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Sample Mortgage Qualifying Ratios
Ratio limits can vary by type of mortgage, downpayment and credit history
 

Example 1

Example 2

Your Figures

Borrower Monthly Income

$1500

$1400

 

Co-Borrower Monthly Income

$1200

$1050

 

Total Monthly Income

$2700

$2450

 

Multiply by 28%

x.28

x.28

 

Allowable Housing Costs

$756

$686

 

Home Purchase Price

$85,000

$85,000

 

Less Downpayment

-$8500

-$8500

 

Mortgage Amount

$76,500

$76,500

 

Monthly Payment (including tax/insurance) Calculate

$669.66

$669.66

 

Comment

Qualifies

Qualifies

 

Total Monthly Income

$2700

$2450

 

Multiply by 36%

x.36

x.36

 

Total Allowable Monthly Debt

$972

$882

 

Monthly Debt: Car Payment(s)

$288

$167

 

Monthly Debt: Credit Card Payment(s)

$157

$18

 

Other Monthly Debts

$84

0

 

Monthly Housing Payment

$669.66

$669.66

 

Total Monthly Debts including Housing

$1198.66

$854.66

 

Comment

Does Not Qualify--Excessive Debt

Qualifies

 

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