FHA Income Qualifying

FHA Income Qualifications

FHA has designed its program to assist home buyers or home owners to purchase homes and refinance existing mortgages. When you are qualifying for a loan, a we will use your gross income. That means all the money you earn before taxes, including overtime, commissions, dividends and any other sources –as long as you can show a steady two year history for these sources. Your monthly housing expense as a percentage of your monthly income is called the housing expense ( front-end) ratio. FHA suggests to spend about 29% of your income on your house payment (including the mortgage, property taxes, mortgage insurance and hazard insurance).

Gross Monthly Income multiplied by 29% Mortgage Payment

Calculate what your new monthly mortgage payment should be by using the formula