How Large of an FHA Loan Can I Qualify for?

Your monthly housing costs should not exceed 29% of your gross monthly income for an FHA Loan. Total housing costs often lumped together are referred to as PITIMI.

P = Principal

I = Interest

T = Taxes

I = Insurance

MI - Mortgage Insurance (always required)


Monthly Income x .29 = Maximum PITIMI 
$3,000 x .29 = $870 Maximum PITIMI per month.

Your total monthly costs, or debt to income (DTI) adding PITIMI and long-term debt like car loans or credit cards, should not exceed 41% of your gross monthly income.

Monthly Income x .41 = Maximum Total Monthly Costs
$3,000 x .41 = $1230
$1,230 total - $870 PITIMI = $360 Allowed for Monthly Long Term Debt

FHA Loan ratios are more stringent than a typical conventional loan.