DTI or Qualifying amount

[Mrsg714]

I have a question that I'm hoping someone can answer. Is the amount of house I could qualify for based on the potential house payment or the overall cost of the house?

For example, I was looking at calculators online and the amount of house I could qualify for based on credit card debt and income would be about $100k with a monthly payment of $850. According to FHA DTI ratios I could qualify for a payment of up to $1250 which could put my DTI around 51%. My husband isn't going to be on the loan which is why we would be comfortable going so high. We've paid $1300/month in rent for the last 4 years (ouch).

Thanks in advance.

[DallasLoanGuy]

those calculators arent very reliable.

post:

income, proposed taxes and all monthly debt and we can calculate

[Mrsg714]

Income is $53,000 annual taxes $3780, debt is $950 (includes car payment, student loan and credit cards). Thanks for your help!

[DallasLoanGuy]

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@Mrsg714 wrote:
Income is $53,000 annual taxes $3780<= is that real estate taxes? on what purchase price?, debt is $950 (includes car payment, student loan and credit cards). Thanks for your help!

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[Mrsg714]

Sorry about that...yes, those are the real estate taxes in one of the area's I'm looking at. They seem a little high I know. The house is $154,500.

[DallasLoanGuy]

that is about a $1300 payment

1300/4416 = 29% housing ratio    that is good

1300 + 950 = 2250 housing + debt

2250/4416 = 51% total debt ratio     a wee bit high but doable for fha

now. i used $100 for homeowners insurance and 4.5% interest rate.  so that 51% would be a little lower

apply with confidence

[Mrsg714]

Thanks for your response. Appreciate it.