As you’ll see in the video, the lenders consider your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses.
Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support.
According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, should total no more than 41% of income.
Lenders also consider cash available for down payment and closing costs credit history and the rest of your financial picture when determining your maximum loan amount.
Latest posts by TitleTap (see all)
- Podcast: Ep. 13: Marketing Strategies for Title Companies with Dean Collura of TitleTap - June 29, 2020
- PropLogix Webinar: SOCIAL MEDIA MARKETING FOR CLOSING AGENTS - June 11, 2020
- 7 Best Solo & Partner Law Firm Website Examples - May 29, 2020