The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt. With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt. See similar questions...

A standard ratio used by lenders limits the mortgage payment to 28 percent of the borrower's gross income and the mortgage payment, combined with all other debts, to 36 percent of the total. The fact that some loan applicants are accustomed to spending 40 percent of their monthly income on rent -- and still promptly make the payment each time -- has prompted some lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant's income. See similar questions...

A lender may tell you that its qualifying ratios are 28/36. The 28 means that 28% of your gross monthly income can go toward housing expenses described above. The 36 means that 36% of your gross monthly income can go toward all of your monthly debt, including housing debt. This amount is often referred to as the "total debt-to-income ratio" or "back-end ratio". This can include monthly payments on credit cards, installment loans (auto, student loans, etc. See similar questions...

This is the ratio used to determine how much of a mortgage you can afford. This is calculated by dividing your monthly obligations by your monthly income. See similar questions...

The debt to income ratio is your total monthly housing expense plus any recurring debts (i.e. monthly minimum credit card payments, car payments, student loan payments, etc.) divided by your monthly gross income. See similar questions...

Your income, debt, and mortgage payments make up your income-to-debt ratio. These are the primary factors that affect whether or not you qualify for a loan. If you do qualify for a loan, you can apply, and ditech will move to the next step of checking to see if you can be approved. To determine your qualification, the first thing ditech will do is divide the monthly payment of your proposed loan by your gross monthly income. This provides your housing-to-income ratio. See similar questions...

Yes. Short-term debt doesn't count as long as it can be paid off within 10 months. And some regular expenses, like child care costs, are not considered debt. Talk to your lender or real estate agent about meeting the FHA debt-to-income ratio. See similar questions...

Your income and outstanding financial debts make up your income-to-debt ratio. This helps the Lender to determine whether you qualify to repay the proposed loan. In order to determine that the Lender adds your total monthly loan payments &/or the proposed loan and divide with by the gross monthly income to determine your ratio. If the ratio falls within a particular range, you may qualify for the loan. See similar questions...

Here are some of the most frequently asked questions at United Mutual Funding. If the question you have is not on this page- please feel free to give us a call at 1-800-752-5166. See similar questions...

The ratio is determined by weighing your total debt against total income. For example, if your income is $100,000 annually and your debt totals $30,000, then your debt-to-income ratio is 30%. There is no maximum debt-to-income ratio on conforming loans and 38% to 50% on jumbo loans—the range depends on the loan program. In some cases, F&M Mortgage Group has approved loans with that hover at 70%. See similar questions...

FHA loans are those that fit under the guidelines established by the Federal Housing Administration, which is a government agency under the direction of the Department of Housing and Urban Development [HUD]. FHA loans are often more lenient than those set by Freddie Mac or Fannie Mae, and the FHA requires a seller to pay for many of the fees associated with selling a property, often making them more attractive to borrowers who qualify. See similar questions...

To qualify for a VA home loan, you must fall into a certain debt ratio. Your income, credit card debts and the new indebtedness created by the VA mortgage are all tallied up to see where you land in terms of debt. The maximum debt ratio you may have and still qualify for a VA home loan is 41%. This is only one factor used to determine eligibility, the others include your reliable income and credit rating. See similar questions...