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.
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Castle Rock Mortgage LLCCompany License: Arizona MB-1005593Company NMLS: 1935205 www.nmlsconsumeraccess.org
Phone: (480) 687-3271Fax: (480) 646-9436Castle Rock Mortgage LLC468 W Pinnacle Ridge Dr San Tan Valley, AZ 85140-7049John@castlerockmortgageloans.com
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