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
Examples:
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.
It is our mission to educate our clients, through a simple process, giving them the peace of mind to enjoy a home that they can afford.
Company NMLS #: 2162073
Compnay DRE #: 02145860
www.nmlsconsumeraccess.org
420 Bullard Ave. Suite 4
Clovis, CA 93612
Phone: (209) 209-4575
mike@healthylendingco.com
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