Debt to Income Ratio

If you're wondering how much home loan you may be able to qualify for, you need to know about DTIR... Debt to Income Ratio.

Your DTIR is the percentage of your gross monthly income represented by this total.

In most instances, this ratio should not exceed approximately 43%.

Example:
Monthly Housing and Debt Payments = $2,000
Monthly Income = $6,000
DTIR = 33%

What goes into your DTIR?

Your proposed monthly housing expenses are added together. Those expenses include the following:

Principal

Interest

Taxes

Insurance

Mortgage Insurance (if required)

Homeowners Association Fees

The total of those expenses is then combined with your current monthly debt obligations. These debts are typically reflected on your credit report and include but are not limited to:

Credit Card Payments

Car Loans

Student Loans

Additional Mortgage Payments