Sentences with phrase «other monthly debts»

In some cases a home buyer can qualify for the monthly mortgage payment BUT other monthly debt payments are too high for the buyer to qualify.

That means your total housing costs and other monthly debt obligations should use up no more than 43 % of your income.

Down payment requirements, carrying other monthly debt and building mortgage - ready credit are common hurdles for today's homebuyers.

The two calculations are housing expense divided by gross income, and the total debt including other monthly debt payments divided by gross income.

Your gross (pre-taxes) monthly salary must be greater than 35 % of the sum of the monthly mortgage, monthly tax and other monthly debt payments.

Total Debt to Income Ratio («Back» Ratio) This is your proposed mortgage payment plus other monthly debt obligations such as car payments, student loan payments, credit card payments, and child support obligations divided by your gross monthly income.

The bottom line is that mortgage lenders want you to have sufficient income to manage your monthly house payments, along with your other monthly debts.

And, a third option doesn't relate to student loans at all — but, rather, credit card payments and other monthly debts.

Most lenders cap your approved mortgage payment plus all other monthly debt payments to 43 percent of your gross income.

So the total fixed payment is basically your housing costs combined with your other monthly debts, like credit cards and auto loans.

Cutting back on all spending so you could use more money to pay down credit cards, car loans, student loans and other monthly debts would help debt problems.

The first ratio says that up to 31 percent of the individual's monthly income can be used for housing costs and that 55 percent can be used for housing costs plus other monthly debts.

That means making extra payments on your mortgage, car loans, or any other monthly debt payments.

-- The sum of the monthly mortgage, monthly tax and other monthly debt payments must be less than 43 % of your gross (pre-taxes) monthly salary.

The total expense ratio includes monthly housing expenses plus other monthly debts.

Your gross (before taxes) monthly salary should be greater than 36 % of the sum of the monthly mortgage, monthly tax and other monthly debt payments

However, if you make your other monthly debt payments on time, it will not lower your score as much.

In addition, your total monthly indebtedness - what you would pay for the mortgage and any other monthly debt payments such as an auto or student loan - should come to no more than 43 percent of your monthly income, although some lenders prefer to see it no higher than 36 percent.

Total Expense Ratio Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.

Fortunately, he had no other monthly debts such as a car payment, credit card or student loan debts.

Non-mortgage debts included installment loans, student loans, and other monthly debts as defined in the Fannie Mae Guide.

In addition to considering the borrower's basic income and expenses — principal and interest, other sources of income, heating costs, property taxes, co-signor income, other monthly debt payments — lenders should look at other factors not normally considered.

The debt ratio, which includes mortgage monthly payments plus all other monthly debt obligations, should not exceed 36 % of the monthly income.

Lenders often include credit card payments, child support, car loans, and other non-short-term obligations in their calculations of the other monthly debt obligations.

Lenders calculate debt - to - income ratio (DTIs) to ensure you have enough income to comfortably pay for a new mortgage while still being able to pay your other monthly debts.

To obtain a standard QM, no more than 43 percent of your gross monthly income should be needed to pay your mortgage, and other monthly debt.

Even if you have other monthly debt obligations, like a car payment or a student loan, your front - end DTI will remain the same, as it only accounts for housing costs.

Lenders can approve a DTI up to 50 % in some cases, meaning half your income can go toward your home payment and other monthly debt payments.

Any other monthly debt payments you make may not go over 41 % of your income.

Your back - end ratio is similar to the one explained above, but it also includes your other monthly debts.

You must keep in mind, when determining how large a mortgage payment you can afford, that your monthly payment generally should not exceed 33 % of your gross monthly income and 38 % when you include your other monthly debt.

Total Expense Ratio Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.

«Your total monthly housing expenses should not exceed 28 percent of your pretax income or 36 percent when combined with all other monthly debt like student loans, car payments and credit cards.

Additional payments can be a good route for many homeowners, pending the amount of time they plan to stay in their home, other monthly debts, retirement funds, etc..

Fannie Mae's last 3 % down payment option, MyCommunityMortgage ®, was retired in late 2015, but HomeReady is a new product that appeals to homebuyers who are struggling to meet down payment requirements, build mortgage - ready credit or qualify due to other monthly debts.

Unique credit situations, such as: foreclosure or non-traditional credit, and other monthly debts, i.e. alimony or child support payments, will also require documentation.

«Consider what you can afford for a monthly mortgage, down payment and home repairs and upgrades,» said Melinda Wilke, wealth management advisor for Northwestern Mutual in Hales Corners, Wis. «Your total monthly housing expenses should not exceed 28 percent of your pretax income or 36 percent when combined with all other monthly debt like student loans, car payments and credit cards.

Lenders can approve a DTI up to 50 % in some cases, meaning half your income can go toward your home payment and other monthly debt payments.