HOME APPLY NOW RATES AND A.P.R. BUYER INFO STAFF PROFILES Debt-to-Income Ratio Are you looking for a mortgage? We'll be glad to answer your questions about your mortgage needs! Call us at (630) 534-5500. Want to get started? Apply Here. Your ratio of debt to income is a tool lenders use to determine how much money is available for your monthly mortgage payment after all your other monthly debt obligations are fulfilled. How to figure your qualifying ratio Most underwriting for conventional mortgage loans needs a qualifying ratio of 28/36. FHA loans are less restrictive, requiring a 29/41 ratio. The first number is the percentage of your gross monthly income that can be spent on housing costs. This ratio is figured on your total payment, including homeowners' insurance, HOA dues, Private Mortgage Insurance - everything that makes up the payment. The second number in the ratio is the maximum percentage of your gross monthly income which can be spent on housing costs and recurring debt together. Recurring debt includes credit card payments, auto/boat payments, child support, et cetera. Some example data: 28/36 (Conventional) Gross monthly income of $4,500 x .28 = $1,260 can be applied to housing Gross monthly income of $4,500 x .36 = $1,620 can be applied to recurring debt plus housing expenses With a 29/41 (FHA) qualifying ratio Gross monthly income of $4,500 x .29 = $1,305 can be applied to housing Gross monthly income of $4,500 x .41 = $1,845 can be applied to recurring debt plus housing expenses If you want to run your own numbers, we offer a Mortgage Loan Pre-Qualifying Calculator. Don't forget these ratios are just guidelines. We'd be thrilled to pre-qualify you to help you determine how large a mortgage loan you can afford. Community Mortgage Corp. can answer questions about these ratios and many others. Give us a call at (630) 534-5500. "Helping You Position Today, For A Better Tomorrow" Illinois License # MB.0005938 - NMLS License # 208737 An Illinois Residential Mortgage Licensee. Licensed by the Division of Banking - Illinois Dept. of Financial & Professional Regulation - 312-793-3000, 100 W. Randolph. 9th Floor, Chicago, IL 60601. Any information in this site does not constitute a mortgage loan approval. Rates are subject to change without notice. Community Mortgage Corp 600 W. 22nd St, Ste 100 Oak Brook, IL 60523 Phone: 6305345500 Fax: 6305345500 E-mail: rR1Ks/12iRf0UXLalDxI8aLt1JUBHED+1ukSn4P1o/0= Portions Copyright © 2021 Pipeline ROI, LLC Another website by Pipeline ROI. | Admin Login | Terms of Use | Site Map This website uses cookies to ensure you get the best experience on our website Got it