Loan Qualifying Quick Reference

Qualifying for a mortgage is based on the ability to make regular monthly payments, assuming downpayment requirements and closing costs can be met. When bottowers use CONVENTIONAL financing (not FHA or VA) and put LESS than 10% down, most lenders use 25/33 qualifying ratios. When borrowers put 10% or MORE down, lenders most often use 28/36 qualifying ratios. Occasionally, more liberal ratios are used, such as 33/38.
1. GROSS MONTHLY INCOME: $ Fill in your expenses to the right to derive your housing and debt totals. Compare these to your lender rates below. Your answers should not exceed total allowed by these ratios.
2. PROJECTED MONTHLY HOUSING EXPENSES (Based on the home you will be purchasing) 33/38 28/36 25/33
$ + + + + = $ $ $ $
Principal + Interest Real Estate Taxes Fire Insurance Mortgage Insurance Association Dues Housing Total  
3. TOTAL MONTHLY DEBT EXPENSES (With 10 or more monthly payments still outstanding)  
$ + + + + = $ $ $ $
Housing Total (from above) Car Payments Credit Cards Personal Loans Other Debt Total