Forgotten Your Password?

Need to Register?

Question Icon

What amount of my annual salary is available for mortgage before tax?

by pragnell.k241 from Lakewood, California. Oct 28th 2016 Reply


Depends on Mortgage Type and other qualifications criteria but generally up to 45%

Oct 28th 2016
1
0
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,250 contributions

IF you are inqui

Oct 29th 2016
1
0
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,250 contributions

IF you are inqu

Oct 29th 2016
1
0
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,250 contributions

If you are inquiring about income ratios, a good rule is about 30% of you income to qualify for how much you can borrow. ex $30,000 can easily qualify for a $100.000 mortgage linda

Oct 29th 2016
1
0
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

It's a combination of the mortgage payment (including property taxes, insurance, any monthly PMI and HOA/regime fees) plus other monthly payments, the total normally is 45%. FHA and VA normally allows much higher ratio's. (also, note it is based on your gross income, not take home)

Oct 30th 2016
1
0
Larry Gray (lgray_312_247)
#566 ranked lender in California - 1,127 contributions

In qualifying, lenders have a specific upfront qualifying debt to income ratio maximum. The only debt used to determine that is the mortgage loan monthly principle, interest, insurance, and taxes. Generally, their is no mortgage loan that allows you to go higher than 47% on the front end which I suspect is what you were asking? Some loans do allow you to include non-occupying borrowers. A 47% front end with a 57% back end (all combined monthly liabilities) does seem high for someone to be contributing to their mortgage payment. However, it does provide some flexibility when certain income cannot be used, the spouse's income cannot be used as they are not included on the loan for good reasons, and for many self-employed borrowers who manage to take enough tax advantages to keep their qualifying net income pretty low!

Oct 31st 2016
1
0
William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

All loan programs have maximum Debt to Income guidelines and are based on MONTHLY income.. For conventional it's 45% to 47%, and other programs can go as high as 57%.. this means that all the payments associated with DEBT including your new housing payment (PITI & PMI / Association / HOA / Fee's / Dues) must not exceed 45% to 57% of your gross monthly income depending on which program you go with.. Realistically, you should get with a loan officer and let him calculate your maximum loan qualification.. Most people do not calculate it correctly... and there it's possible you might have to include other payments into your ratio that you didn't think would count against you.. (alimony, child support, IRS tax payments, etc.). Also, certain debt payments might not go against you in certain situations.. ( payments on installment loans with fewer than 10 months remaining, payments on debt that are paid by your employer, or are paid by your Self Employed business, etc..).. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 31st 2016
1
0
Subscribe to our news feed.