opendoors4.jpg (8084 bytes)

| | | | | |

2 - Loan Qualifying Steps to Loan Qualifying

Debt Qualifying

Ratio should not exceed 41% on your income
Items can be paid to qualify

In addition to your income, a lender will look at your debts. Generally, debts include your house payment as well as minimum monthly payments on all loans, charge cards, child support, etc. that you make each month. The percentage of debts to income is called the debt-to-income (a.k.a.: back-end) ratio. A good goal is to spend no more than 38% of your income on all debts. However, under FHA home loan guidelines you're allowed to spend up to 41% of your monthly income on housing and other debts -- if the rest of your application shows you can handle it.

This ratios can also adjusted or  exceeded if there are item(s) you can payoff, have less then 6 months of payments left, or change loan programs. FHA is the most flexible on this back-end ratio. Never rule yourself out of buying a home until you have spoken to a mortgage professional.

Search Site

Apply for FHA Loan


FHA Loan Limits Search | Equal Opportunity Lender | Fair Lending | Licensing | Privacy | Sitemap | Disclosures
| Questions | Realtors | FHA Home Loans.com - Home | Links
We are not a government agency.  FHA home loans are not originated by the HUD or FHA. HUD only insures FHA loans and HECM reverse mortgages. FHA loans are originated and funded by HUD approved FHA home loan lenders. FHA-Home-Loans.com is not a mortgage lender and does not make or offer fha loans directly or indirectly.  Information about FHASecure refinance program to help borrowers who are facing foreclosure and must refinance.FHA-Home-Loans.com is owned and operated by a private company specialized in providing information about FHA loans and does not make or offer FHA home loans and FHA mortgages. FHA-Home-Loans.com is not affiliated with or owned, operated, endorsed or sponsored by HUD, Federal Housing Administration or FHA. Contact HUD directly at: www.hud.gov
Copyright 1999-2012 FHA-Home-Loans.com. All Rights Reserved.