FHA loans are quite common place since they still offer assistance with closing costs and have much lower down payment requirements that many conventional loans. If you were preapproved by a major bank or financial institution, they already ran your debt to income ratio with the information you provided them. They are required by law to provide you with an estimate of your costs and what your monthly payments would be. If and when you're ready to look at houses on Long Island, please feel free to contact me.

Ralph Windschuh
Certified Buyer Representative
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com

I happen to be a mortgage broker as well as a real estate broker. To calculate your max monthly payment take 43 percent of your gross monthly income. As an example , an annual income of 60k a year would be 5k a month gross. If you take 43 percent of that you would have a max payment of $2150 a month. The $2150 would include tax, insurance, pmi (private mortgage insurance) and the mortgage payment. Keep in mind that if you have mature credit (not just a high score) and low debt then we could get your back ratio (thats the 43%) to as high as 50%, which would increase your monthly payment.

Also, keep in mind that mortgage lenders (banks, brokers and correspondent lenders) make WAAAAAYY more money on FHA loans. If you can qualify conventional you should take that route as its cheaper for you. No MIP (mortgage insurance premium, dont confuse this with PMI) and a lower rate.

If you have any further questions, fell free to email or call and I can go over with you in more detail, no charge no obligation whatsoever.

Good luck.

Typically the front end debt ratio should not be more than 28% of your income. Your back end debt ration should not be more than 36% of your income. There are FHA loans that will allow you to go over those limits a little bit, but banks have tightned up a bit since this whole thing started. I would recommend that you speak with a reputable mortgage broker and give them your scenario. If it sounds too good to be true, it is.

Here is a mortgage calculator that you will be able to figure out what you will be able to qualify for by typing in your numbers: http://www.pemc.pemc.com/calculators.html

If you need additional help or have questions, please feel free to contact me. I would be happy to try to help.

Hi Norma:

Please visit my website and play with this great calculator - http://mortgageprosofwisconsin.com/calc_qualify.html

FHA guidelines set a recommended debt to income ratio, however there are compensating factors that will allow an individual to qualify at higher ratios. An emample would be high credit score, more than adequate verifiable assets, downpayment, job time, etc. It is best to sit down with a qualified mortgage planner and have them review your personal qualifiny critera.

Please use the online calculator as a reference point and have fun!!!!!!!