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 How much house can I buy?
When Buyers ask Sharon this
question she prefers that
they talk directly with a Lender because of the many variables.
However, here is some basic information that can help
you determine what you can afford.
Conventional loans usually require that your total
house payment, including taxes and insurance, should equal no more than 28% of
your gross monthly income. This is called your "front"
ratio. Your total debts including house payment, credit cards, student
loans, car payments, installment loans, child support, should equal no more than
36% of your gross monthly income. This is called your "back"
ratio. FHA and VA have slightly higher allowable ratios.
How much house you can
buy at payments you can afford depends on the loan product you choose.
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