This means that all of your monthly payments that are shown on a credit report (mortgage, car payment, credit cards, student loans, etc) have to total to less than $1042. If you bought a house with a monthly payment of $795, that means you only have about $287 left to spare.
A $795 monthly payment, including taxes and insurance, equates to about a $100,000 home on a 30 year mortgage with an FHA loan. Obviously you could lower that monthly payment by putting a larger down payment or buying a less expensive house.
Hope this helps you understand a little about the home financing side of things...
It's more than real estate. It's RAYL-Estate!
Keller Williams Elite