How Much Income Do I Need to Qualify

 
Financial Analysis (Switch to Plain English)
Monthly Principal & Interests : $1,449.42
Monthly Real Estate Taxes : $250.00
Monthly Insurance : $125.00
Loan To Value Ratio : 90.00%
Months With PMI : 78
Monthly PMI : $112.50
Total Monthly Payments : $1,936.92
Allowable Debt Payments : $1,076.07
Required Income : $6,456.39
Step 1: Understand Calculator In Plain English (Show Financial Analysis)

If you have finally found your dream home and you havenĺt pre-qualified for a loan yet in order to see how much you can afford when it comes to buying your home, you can work backwards instead. By plugging in certain information, such as the cost of the home, how much the interest rate on the loan is likely to be, and how much you will pay as a down payment, you can determine how much your income will need to be to qualify for the mortgage loan on the home you love.

For example, if the home you are looking at costs $300,000.00 and you plan to put $30,000.00 down on a 30 year loan with a 5.000% interest rate, your total payment on the principal and interest will be $1,449.42. If your annual property taxes are $3,000.00 and your annual insurance is $1,500.00, that will bring your total monthly payment to $1,936.92. With a monthly payment of this amount, your total gross monthly income will need to be at least $6,456.39 in order to qualify for the loan.

Estimated front and back ratios helps you to limit your housing and necessary living spending.

Front ratio is a percentage of your gross income that you can spend on all housing related expenses, including property taxes and insurance. Back ratio is a percentage of your gross income that you can spend on your housing expenses plus cost of shelter: food, clothes, gas, etc.

Front / back ratios with values of 28-33 / 36-42 considered conservative these days, values bigger than 35 / 45 called aggressive and not recommended for use.

Step 2: Input Your Calculations Below
Property Information
Home Value : ($)
Loan Information
Down Payment :
Interest Rate : (%)
Length : (Yrs)
Estimated Front Ratio : (%)
Estimated Back Ratio : (%)
Taxes And Insurance Information
Annual Taxes :
Annual Insurance :
Annual PMI :
 Let Me Print That Form in PDF!

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.

For Future Reference

BOOKMARK THIS SITE NOW

Get Started - Apply Today

FHA Application - Apply For FHA
Frequently Asked Questions
FHA Guidelines
FHA Requirements

FHA Refinance Programs

FHA Streamline
FHA Secure
FHA Loan Refinance

FHA Loan Programs

Federal Housing Administration
FHA Down Payment
203k FHA Loan
FHA Fixed Rate
FHA Adjustable Rate

FHA Loan Calculators

Mortgage Payment Calculator
Mortgage Principle Calculator
Mortgage Length Calculator
Mortgage Affordability Calculator
All Mortgage & Refi Calculators

Contact FHA Loan Corp

Apply Today
Contact Us

Testimonials

FHALoanCorp
Phoenicia Center
7932 W. Sand Lake Road
Suite 106
Orlando, FL 32819
Email: info@fhaloancorp.com
Copyright © 2004-2010 - FHALoanCorp | Privacy Policy

Helpful Articles & Info

Federal Housing Administration
FHA Loan Information
10 Things To Know About FHA Loans
FHASecure Saves 33,000 Homes
FHA Loan Benefits & Information
Why Ask For An FHA Loan?
What Does The FHA Do?
Fixed Rate Loan Information
Refinancing Home Loans
FHA Loans Are In High Demand
Avoid Foreclosure With FHASecure
Subprimes In Favor of FHA
FHA Mortgage Insurance
FHA Adjustable Rate Mortgage
FHA Insurance Funds
FHA Mortgage Refinance Options
FHA Loan Checklist
What is FHA Refinancing?