Helene Moret…, Home Buyer in 02917

can you get a silent second mortgage with an FHA loan? Also what is a safe debt to income ratio for mortgage

Asked by Helene Moretti, 02917 Sat Mar 14, 2009

payment including house taxes. Except for student loans when out of deferrment($50. per month) the mortgage is all I will owe. But you have to consider cost of running home and living expenses. So I'm asking with your experiences as brokers over the years, what is a safe ratio. Thanks for all the replies.

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Christopher…, Agent, Providence, RI
Sun Mar 15, 2009
Hi Helene,

I would highly recommend getting in touch with a mortgage broker to get more detailed information, but I will offer up some basic information regarding ratios.

There are 2 different ratios that are looked at when determining how much of a house you can afford. The front end ratio which includes your principal,interest,taxes, and insurance(known as PITI) really shouldn't exceed 28% of your gross monthly income. Although in recent years many people have exceeded this, hence the dilemma we find ourselves in. The second ratio that is important is known as the back-end ratio, this includes all of your monthly debt obligations including PITI,credit cards, student loans, alimony...etc.. This ratio should not exceed 36% of your gross monthly income.

I hope that helps a little.

Happy Hunting,
Chris
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