HOW MUCH HOUSE CAN I AFFORD?

 The purpose of this worksheet is to “Back Into” the estimated purchase price of a home you will be qualified to purchase.  You are allowed to spend up to 28% of your Gross Monthly Income for a mortgage payment on a conventional loan, 29% on an FHA loan.  This is called your Front Ratio.  You are allowed to spend up to 38% of your GROSS Monthly Income for the proposed mortgage payment plus all other monthly debts for a conventional loan, 43% for an FHA or VA loan   (VA has no Front Ratio).  This is called your Back Ratio.

Gross Monthly Income                 Borrower                  Co-Borrower

 Base Monthly Income                  $__________               $__________

 Overtime                                           __________                  __________          

 Part Time                                          __________                 __________

 Commission’s                                 __________                 __________

 Bonus                                                __________                  __________

 Soc. Security                                    __________                  __________

 Other                                                   __________                 __________

  TOTAL                                              $__________               $__________ =

 $________(A)

Monthly Obligations                     Borrower                  Co-Borrower

Auto Loans                                    $__________               $__________

Installments                                     __________                 __________           

Credit Cards                                    __________                  __________

Student Loans                                __________                  __________

Other                                                 __________                  __________

TOTAL                                             $__________               $__________ =

$________(B)

Determine Monthly Debts:

$__________________X ____________________  = $___________________(C)

Gross Monthly Income X  38% Conv., 43% FHA/VA  =  Total Debts Allowed

Subtract Total Monthly Obligations From Total Debts Allowed:

$________________ -  $___________________  =  $___________________(D)

Total Debts Allowed  -  Monthly Obligations   =    Estimated Maximum

           (Line C)                           (Line B)                        Mortgage Payment

Determine Maximum Front Ratio:

$_________________ X ____________________ =  $___________________(E)

Gross Monthly Income X 28% Conv., 29% FHA/VA =  Estimated Maximum                                                                                          Mortgage Payment

Determine Maximum Loan Amount:

$___________________ X __________________ =  $___________________(F)

Estimated Maximum X     Multiply X Factor             Estimated Maximum  

Mortgage Payment         (See Chart Below)                Loan Amount    

(Lesser of D or E)

Determine Maximum Purchase Price:

$___________________ ¸ __________________ =  $___________________(G)

Estimated Maximum          Loan-To-Value              Estimated Maximum

      Loan Amount                (.95/.90/.80 Conv.)                Purchase Price

                                               (.98 FHA/1.02 VA)

30 Year   –                 6.0% – 124,     6.5% - 119,     7.0% - 115,     7.5% - 110

 [ Don't Pre-Qualify ] [ Pre-Qualify Now ] [ How Much Home ] [ Types Of Mortgages ] [ Questions ]

Disclosure

 Web Site Internet Warning:

 Despite advertising claims to the contrary, the internet is not an experienced Dancer, Real Estate or Mortgage Professional. It cannot consult, counsel, advise, have knowledge of local laws and market conditions, make judgments, "own" the result, or most importantly, understand your individual goals and needs or care about you as a Customer, Client or Dancer. To obtain an accurate interpretation of any information you're receiving online, please contact Cathy at 404-550-0775 or E-mail: mcm135@aol.com

Last modified: February 21, 2006