How much to qualify for 500K mortgage?
Asked by Anthony W. Waipahu, HI • Yesterday at 9:34pm
John Burke. Mortgage Broker or Lender, Austin, TX
The amount you qualify for will depend on your debt to income ratios which are based on the monthly payment associated with the debts on your credit report plus the total estimated housing payment divided by your gross monthly income.
For example: Your gross monthly income is $115,000 / 12 = $9,583.
The total housing payment should be 33% or less of your gross so in your case that would be $3,162.39 or less for your front end debt ratio.
Now you have to add the estimated mortgage payment to all of your other monthly debt payments on your
credit report and divide by your gross monthly income to calculate your total back end ratio.
For example: Let's say all of your debts on your credit report add up to $1,500 now add that to the estimated mortgage payment, $1,500 + $3,162.39 = $4,662.39 divided by your gross monthly income of $9,583 = .4865 or 48%.
I specialize in VA financing and would be honored to walk you through the process.
Take a look at the recommendations from some of my past clients on my Trulia profile by clicking the link below my phone number.
Please feel free to contact me for more information or help.
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Great Plains National BankSource: www.trulia.com