What Is The Debt-To-Income Ratio For FHA Loans?

Remember the pointers from this video: as of 2013, the FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt.

With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt.

You may qualify to exceed if you have: a large down payment a demonstrated ability to pay more toward your housing expenses substantial cash reserves net worth enough to repay the mortgage regardless of income evidence of acceptable credit history or limited credit use less-than-maximum mortgage terms funds provided by an organization a decrease in monthly housing expenses.