HOW MUCH HOME CAN I PURCHASE

There are several factors that we are required to consider when determining how much home you can afford.

Here are the two key factors:

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Debt to Income percentage or DTI

-          With an CHFA FHA loan you can go up to 55%

-          With a CHFA Conventional loan you can go up to 50%

Here are some examples of monthly “credit” debts:

  • Car payments
  • Credit card
  • Student loan
  • Future Mortgage payment
  • HOA (home owners association fee’s)
  • Other monthly payments such as cell phone,  insurance or utilities do not count toward your DTI

Gross Monthly Income:

  • This is your monthly income before taxes are taken out of your paycheck