Home › Forums › Housing › When was the last time? › Loan qualifying is based on
Loan qualifying is based on total monthly minimum payments on a credit report + housing expense. Front end ratio doesn’t matter.
$63,400 annual gross income = $5283 mo. 43% is pushing the ratio for most ppl = $2272 TOTAL monthly payments.
Assuming NO car payments, student loans or credit card minimum payments & a 4.00% rate with a 20% down payment:
$450K purchase price & $360K loan 1757 Payment 450 taxes 75 Insurance ———– $2282
If there is HOA or Mello Roos, car payment or other monthly debt the loan payment will need to be less to qualify.
It might be possible to go to a higher ratio, as approvals can vary based on multiple factors.
