FHA Debt to Income Guidelines

FHA has set up certain debt-to-income guidelines and requirements to help ensure that prospective homeowners don’t over extend themselves financially when buying a new home. FHA has two current debt to income requirements, which are:

1) Mortgage payment expenses as compared to income and

2) Total fixed payments as compared to income

Mortgage payment expenses as compared to income

The first debt-to-income guideline established by the FHA is the ratio of your prospective mortgage payment to your income. To calculate this FHA debt to income guideline, add up all mortgage related required expenses monthly (i.e., amount of actual mortgage payment due, property taxes, homeowner's insurance premium, any homeowner's association dues and related expenses), and then divide that number by your gross monthly income.

Total fixed payments as compared to income

To calculate the total fixed payments as compared to income, simply total your total monthly mortgage payments and all your outstanding debt due monthly (both revolving and installment debt such as credit cards, car loans, student loans, etc.). Divide that total amount (which is your “total fixed payments” for each month) by your gross monthly income.

Can CityWorth Mortgage help me determine how much house I can afford and what FHA mortgage loan amount I’ll qualify for?

Yes! As experienced mortgage bankers, we will assist you in determining a realistic budget and calculating the amount of mortgage for which you qualify. Call us today to learn more about FHA loans and to get prequalified for your FHA loan!

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