HOW MUCH (HOUSE) DO I QUALIFY FOR?
Although not 100% accurate, the formula below will get you as close to the horse shoe without quite making it all around the stake.
A. ENTER YOUR TOTAL MONTHLY HOUSEHOLD INCOME =
This is your household Pre-Taxed income that can be documented
A.
B. MULTIPLY BOX A BY 50%
If you want to be super safe multiply Box A by 43%
B.
C. ENTER YOUR TOTAL MONTHLY LIABILITIES PAYMENTS =
Include your minimum monthly payments for the following:
- Cars, credit cards, student loans, other accounts that reflect on your Credit Report
Do not include:
- Utilities, car insurance, health insurance, food, gas and leisure items
- Cars, credit cards, student loans, other accounts that reflect on your Credit Report
Do not include:
- Utilities, car insurance, health insurance, food, gas and leisure items
C.
D. LET'S CALCULATE THE NUMBERS B - C = D
This is the maximum house payment you qualify for including property taxes, homeowners insurance, and/or any homeowners association dues
D.
E. BOX D DIVIDED BY 0.9% EQUALS LOAN AMOUNT
This is the maximum Loan Amount you qualify for so take your Down Payment into account when determining your Loan Amount
***Quick Homebuying Tip! If your total documented monthly household income is greater than 3% of the Purchase Price, you rarely have anything to worry about when it comes to affordability qualifications.***
