You should be talking with a Lender and a Realtor, Find the location you like to buy a house. See if you could qualify for some programs, (down payment assitance), FHA sounds that is right for you. The lender industry is changing, what is now being offered, might change. I strongly encourage you to talk to a lender and ask lots of questions, get informed and always read before you sign.
A lender is the first step in the process, However I have on my website two excellent tools to help you understand before you go to the lender. Go to my website and look at First Time Home Buyer and then to Buyer Information and click on the Estimate your buying Power. If you need help just let me know and I'll get you there.
It sounds like you are looking to calculate you DTI (Debt to income ratio). In order to do this to see what you will qualify for on a purchase price you also need a mortgage calcuulator, the annual taxes, homeowners insurance preium, and you also need to calculate your MIP preimum which is .50 for FHA and loan amount to be accurate.
Next step is you need to figure out what your GROSS monthly income is prior to taxes. Next you need to add up all the current monthly debts on your credit bearu. Do NOT add in the debts if you have less than 10 payments left on to be paid off as underwriters will not count this against you. Take your total monthly payments on your debts and add that up. Then divide by your gross monthly income. That is your front end ratio.
Then add all your monthly debt payments (Only the ones on your credit report!), add in your monthly mortgage payment with those Debts. Finally divide that total by your gross monthly income = Your back end ratio. For FHA you want your back end ratio to be around 43% or less.
It might be easier to contact a local banker or loan officer and have them figure it out for you. Let me know if I can help you out further!! But that is the formula my friend.......
Feel free to contact me if you have any questions or concerns!
You can use the mortgage calculator on my website to see what you can afford. Feel free to click the link below.
Let me know if you have any questions.