Also known as the Total Debt/Income ratio, standard underwriting guidelines for mortgage loans typically used by lenders call for your Housing+Debt/Income ratio not to exceed 28.0%. This ratio is calculated as follows:
PITI + Other Monthly Debt |
| Monthly Gross Income |
Required (Do Not Enter in Commas)
Min: 1.0
Max: 55.0
Decimals: 1
Remarks
Important Tips: A lender may change the standard limits of either the Housing/Income ratio (28.0%)
and/or Housing+Debt/Income ratio (36.0%)
based on your creditworthiness. For example, if you have excellent credit and have
held your current job for more than 3 years, the lender may raise the limits. Ratio
limits may vary in different regions of the country as well.
Example
If you want to raise the Housing+Debt/Income ratio to 40.0%,
enter: 40.0
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