Front End ratio is how your gross income compares against the full mortgage payment. Back end ratio, is how your Gross income compares against your mortgage payment + all of your other payments.What they want to make sure is that you are not taking out a mortgage payment that is 50% of your income.You are welcome to call if you would like further explanation.ThanksEddie Stephen - 720-217-2200

To answer your question; For a conventional mortgageFront End Ratio is the Ratio that looks at your total monthly housing expense (Principal, Interest, Taxes, Insurance, Monthly Homeowners' Dues if applicable) in relationship to your total monthly income.Back End Ratio is the Ratio that looks at your total monthly housing expense and your total other monthly bills on your credit report, ( as well as childcare expense, alimony paid out, child support paid out, if applicable)To illustrate,Assume your Total Monthly Housing Expense is $1000, Your total other monthly Expenses are $1000, and your Gross Monthly Income is $5000.Your Front Ratio would be ($1000/$5000) = 20%Your Back Ratio would be ($2000/$5000) = 40%Allowable ratios vary a bit for different loan programs, but typically, most programs target a front ratio of around 36% and a back ratio of around 41%. With compensating factors, such as large down payment, or significant cash reserves, you may be able to qualify for higher ratios.Hope this helps!David Mordue - Wells Fargo Home MortgageDavid.Mordue @wellsfargo.com / www.wfhm.com/david-mordue

I looked at the other answers and they look good. If you need any other details, give me a shout. Kyle. Bayview Home Loans