Payment Guide

How Much House Payment Can I Afford
One of the first things you'll want to do is "pre-quality" yourself (determine just how much of a
home loan you can afford by estimating your maxium monthly house payment). By knowing the
down payment amount and your maxium monthly house payment, you'll know which homes fall
into your price range. The worksheet here shows two steps in estimating your maxium payment.

STEP ONE - INCOME RATIO (28%)
Total Gross Monthly Income
(self + any co-borrowers)............................................$________________________
...................................................................................________________________ .28 Conventional
Estimated Maxium Monthly House Payment.................=________________________*

0........0.28 = 0

STEP TWO - TOTAL DEBT RATIO
(36%) Conventional
(41%) VA/FHA
1) Multiply your total gross monthly income by (.36 or .41)
Total Gross Monthly Income
(self + any co-borrowers)............................................$_________________________
...................................................................................___________.36 Conventional or .41 VA/FHA
...................................................................................(A) = $____________________

Conventional
0........0.36 = 0

VA/FHA
0........0.41 = 0

2) Add Up These Expenses:
Monthly Installment Debts.............................................(B) = $______________________
(Include all debts with 10 or more payments remaining, e.g car, credit cards, child support/alimony)

3) Subtract (B) from (A):
Estimate Maxium Monthly House Payment.....................(C) = $______________________
(principle, interest, taxes and insurance)

A...... B = 0