Debt to Income Ratio Calculator; Qualifying for FHA, VA and Conventional Mortgage Loans

Debt Ratio Calculator
Your Monthly Gross Income (before taxes):
Spouse's Monthly Gross Income (before taxes):
Other Gross Monthly Income:
Monthly Rent/Mortgage payment:
Monthly 2nd mortgage payment:
Total All Monthly Fixed Term Loan Payments (auto etc.):
Total of Monthly Credit Union Fixed Term loan payments:
All other monthly consumer loan payments:
Total of all monthly minimum charge card payments (Visa, Mastercard, dept. store, etc.):
Other monthly payments:
Pending monthly loan payments:
Gross Income:
Total Monthly Obligations:
Debt Ratio:

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Qualifying for a Mortgage

There are two criteria that lenders use to determine the size of mortgage that you are qualified for.

1- Your total monthly housing expense, consisting of: principal and interest payments on you mortgage, also known as PI; Taxes and insurance. These total payments are called PITI. This should not exceed 33% of your income.

2- Your monthly housing expense plus all other long term and revolving debt payments. This should not exceed 42%.
In our mortgage calculator page you will find a series of calculators that will help you with your mortgage qualifying calculations.
Four specific factors are used to determine eligibility, these factors are:

A- Income – This includes all your monthly income gross of taxes. Depending on the mortgage loan program you may or may not have to prove your income.

B- Credit History – This includes your payment history, total outstanding debt, highest balance and any other liens that may have been filed against you. A credit score is automatically generated based on the above information to assist in the decision making process.

C- Assets – Including cash in the bank, all other liquid assets and retirement plan balances.

D- Property – The home you are planning on buying will be appraised and it should have enough value to support the loan amount. It is worth noting that the appraisal must come in at least at the purchase price. Should the property apprise for more that you are paying for, you will NOT be qualified for a higher loan amount.

Acceptable Debt to Income Ratios vary depending on the type of loan applied for.