Your monthly costs should not exceed 54.99% of your gross monthly income for an FHA Loan. Total housing costs often lumped together are referred to as PITI.
P = Principal
I = Interest
T = Taxes
I = Insurance
Examples:
Your total monthly costs, or debt to income (DTI) adding PITI and long-term debt like car loans or credit cards, should not exceed 54.99% of your gross monthly income.
Monthly Income x .54 = Maximum Total Monthly Costs $3,000 x .54 = $1,620 PITI + All other debts
FHA Loan ratios are more lenient than a typical conventional loan. On case by case basis, DTI can exceed 54%.
Click Refinance or Home Purchase to have a Mortgage Banker contact you on your specific loan needs.
Powered By