Loan Qualification Calculator
Income =
PITI/Escrow Payment = 0
Other Debt Obligations = 0
Home = 28
Total = 36
Qualified? =
Mortgage Ratio =
Debt Ratio =
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Calculates the home buyer's ability to qualify for a mortgage.
Rows
- Income: Amount of monthly income.
- PITI/Escrow Payment: Expected monthly payment to escrow. This include principal, interest, taxes and insurance.
- Other Debt Obligations: Total monthly long-term debt obligations (excluding expected PITI/Escrow payment). This could include auto loans, child care, alternative home loans, etc.
- Home: PITI/Escrow payments cannot exceed this percentage of monthly gross income
- Total: PITI/Escrow payments plus other obligations cannot exceed this percentage of monthly gross income.
- Qualified?: Yes if the client qualifies; no otherwise. The client qualifies if both Mortgage Ration and Debt Ratio are below Home% and Total% respectively.
- Mortgage Ratio: Ratio of PITI/Escrow payment to income. This must be below Home to qualify.
- Debt Ratio: Ratio of debt to total income. This must be below Total to qualify.
Examples
Would your customer qualify for a mortgage if he has $7,600 per month in income? His expected PITI/Escrow Payment is $2,100 and he also carries an additional $500/month in debt obligations. Assume the standard Home (28%) and Total (36%) ratios.
- Income: $7,600
- PITI/Escrow Payment: $2,100
- Other Debt Obligations: $500
- Home: 28%
- Total: 36%
This customer qualifies for the mortgage.
Keywords
Income
PITI/Escrow Payment
Other Debt Obligations
Home
Total
Qualified?
Mortgage Ratio
Debt Ratio
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Principal
Interest
Taxes
Insurance
