Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008
Re: Preparing to buy

It looks like you should qualify for around 3200 per month payment going by the FHA 43% total debt ratio.  For that money you should easily be able to find a house in the mid 300's  It is a smart decision to not base your buying power on the self employed income for 2 reasons, self employed makes all loans a little harder to get done, and you know you are not overextending and are leaving extra money for unexpected expenses, etc.


I would try to keep at 3K or under payment (maxing the total backend ratio on just the mortgage will make the underwriter a little jumpy) but it should be OK in either case.  the UW will see the SE income anyways when they request taxes so they will have good compensating factors for high front end DTI.