Maximum Loan Amount
There are many considerations to your lenders decision as
to what your maximum mortgage loan amount will be. The lender
considers your debt-to-income ratio, which is a comparison of
your gross (pre-tax) income to housing and non-housing expenses.
Non-housing expenses include such long-term debts as car or
student loan payments, alimony, or child support. According
to the FHA, monthly mortgage payments should be no more than
29% of gross income, while the mortgage payment, combined with
non-housing expenses, should total no more than 41% of income.
Other items that a lender might use when determining your maximum
home loan amount are the cash you have available for a down
payment and closing costs, credit history, etc.
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