PITI question

[Anonymous]

Hi,

I plan to make an offer soon on a townhome.  Part of the offer will be that the HOA is paid by seller for the first year.  Will the HOA fee still be included in the PITI calculation?

Thanks!

JP

[Anonymous]

HOA fees are completely separate and are not included in the monthly PITI calculation.

[sunrise]

jeffy...PITI = Principle, Interest, Taxes and Insurance.

Do you mean to ask if it is included in your DTI?  (Debt to Income)

[Anonymous]

Hi...thanks for getting back with me.  Well, I was using the formula for PITI from ShanetheMortgageGuy, and it says to include HOA fees.

PITI: Principal-Interest-Taxes-Insurance is the total housing expense on a monthly basis.  Also includes homeowners association fees, and monthly mortgage insurance if applicable.

The seller has offered to pay the HOA fee for the first year, so do I have to include that in my calculation? 

Thanks!

JP

[sunrise]

jeffy.....definitely do as shane says!! 

I would ask your lender if they will include this in PITI.....technically you will be paying HOA fee's, just 12 months down the road. (deferred )

[ShanetheMortgageMan]

Yup yup, HOA fees will be included in the DTI calculation... even if they are paid by the seller for the first year.