Your monthly costs should not exceed 29% 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
Monthly Income x .29 = Maximum PITI
$3,000 x .29 = $870 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 41% of your gross monthly income.
Monthly Income x .41 = Maximum Total Monthly Costs
$3,000 x .41 = $1230
$1,230 total - $870 PITI = $360 Allowed for Monthly Long Term Debt
FHA Loan ratios are more lenient than a typical conventional loan.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 227262
1 Vantage Way Ste E240
Nashville, TN 37228
Phone: (615) 915-1347
Not a commitment to lend. Additional terms and conditions may apply. USA Lending dba DAS Acquisition Company, LLC is not affiliated with or endorsed by the HUD, FHA, VA, the government of the United States, or any federal, state or local government agency. Corporate address: 12140 Woodcrest Executive Drive, Suite 150, St. Louis, Missouri 63141. Telephone: (314) 628-2000, Toll Free: (888) 250-6522. For complete license information: http://www.nmlsconsumeraccess.org