Your monthly costs should not exceed 31% of your gross monthly income for a FHA Loan. Total housing costs often lumped together are referred to as PITI.
P = Principal
I = Interest
T = Taxes
I = Insurance
Examples:
Monthly Income x .31 = Maximum PITI
$3,000 x .31 = $930 Maximum PITI
Your total monthly costs, or debt to income (DTI) adding PITI and long-term debt like car loans or credit cards, should not exceed 43% of your gross monthly income.
Monthly Income x .43 = Maximum Total Monthly Costs
$3,000 x .43 = $1290
$1,290 total - $930 PITI = $360 Allowed for Monthly Long Term Debt
FHA Loan ratios are more lenient than a typical conventional loan. FHA does offer some flexibility in the debt-to-income ratio requirements under the right circumstances.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 219462
Licensed Mortgage Broker with
NJ Department of Banking and Insurance
and
PA Department of Banking and Securities
www.nmlsconsumeraccess.org
Xpress Financial Mortgage Corp.
dba Xpress Lending
4270 Route 1 North
Monmouth Junction, New Jersey 08852
Phone: (732) 951-0808
anil@xpresslending.com
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