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.
Coast to Coast Funding is the leading mortgage company specializing for financing non-warrantable condo. We are a direct/wholesale lender serving the entire state of California. Check out the homebuyer or mortgage broker sections to find out how we can help!
Company NMLS: 92145
Company BRE: 01524242
Individual NMLS# 498630
Individual BRE# 01486490
1 Orchard Road, Suite 235
Lake Forest, California 92630
Phone: (877) 256-0948