© 2018 AFC Mortgage Group, LLC

AFC Mortgage Group NMLS# 2801  |  Frank Ciambriello NMLS# 4757

Licensed in CT, NY, MA, VT,  Equal Housing Lender

(203) 452-9899  |  fciambriello@afcmortgagegroup.net

AFC Mortgage Group, LLC

Monroe, CT 06468

How big of an FHA Loan Can I afford?

Your monthly costs should not exceed 29% of your gross monthly income for an FHA Loan. Total housing costs often lumped together are referred to as PITI.

P = Principal

I = Interest

T = Taxes

I = Insurance

Examples: 

 

Monthly Income x .29 = Maximum PITI 
$3,000 x .29 = $870 Maximum PITI

Your total monthly costs, or debt to income (DTI) adding PITI and long-term debt like car loans or credit cards, should not exceed 41% of your gross monthly income.

Monthly Income x .41 = Maximum Total Monthly Costs 
$3,000 x .41 = $1230 
$1,230 total - $870 PITI = $360 Allowed for Monthly Long Term Debt

FHA Loan ratios are more lenient than a typical conventional loan.