how much house can I afford
Debt to income ratios are the calculations underwriters use to determine whether a borrower can qualify for a mortgage. They are used to determine if you have the capacity to repay your mortgage.
There are two calculations. The first or Front Ratio is your housing expense-to-income ratio. This is your proposed mortgage payment (principle, interest, taxes, mortgage insurance, and home owners insurance) divided by your gross monthly income.
The second or Back Ratio is your total monthly obligations-to-income ratio. This is your gross monthly payment including Mortgage PITI divided by your gross monthly income.
FHA does not require collection accounts to be paid off as a condition of mortgage approval. However, FHA does recognize that collection efforts by the creditor for unpaid collections could affect the borrower’s ability to repay the mortgage.
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Credit score needed to buy a house.
Credit score needed
to buy a house
FHA credit score
FHA requires a minimum 500 credit score to buy a house
VA credit score
VA requires a minimum 500 credit score to buy a house
Fannie Mae credit score
Fannie Mae requires a minimum 620 credit score to buy a house
Freddie Mac credit score
Freddie Mac requires a minimum 620 credit score to buy a house
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