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How Much Can You Afford? Illinois

Shopping for a home but not sure how much you can spend? Here's how to figure out your price range.

Local Companies

Wells Fargo Reverse Mortgages
312-919-4749
511 W North Ave
Chicago, IL

AAA Reverse Mortgage Specialists, Inc.
815-893-7324
PO Box 631
Spring Grove, IL

Fox Valley Mortgage
630-347-6321
11291 Devon Lane
Huntley, IL

Advanced Mortgage
(309) 676-1334
416 Ne Saint Mark Ct Ste 201
Peoria, IL

Alliance First Mortgage
(309) 687-5050
3622 N Knoxville Ave
Peoria, IL

Wells Fargo Financial Illinois, Inc
(309) 688-9405
4517 Rockwood
Peoria, IL

Integrity Mortgage Services, Inc.
(309) 692-2840
3020 W. Willow Knolls Drive
Peoria, IL

OPEN MORTGAGE LLC
815-690-8000
15130 S RT 59
PLAINFIELD, IL

Eagle Mortgage Brokerage Inc
(309) 686-7676
2020 W War Memorial Dr Ste 303
Peoria, IL

American Mortgage Lending Inc
(309) 688-5568
3709 N Sheridan Rd Apt B
Peoria, IL

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Qualification ratios are set by the lender that state your housing expense to income, and housing expense plus other debts to income, cannot exceed a specified number. Many lenders use a 28% housing expense to income and a 36% housing expense plus debts to income. Other ratios may be how much you put down on a home. It is important to remember that these ratios may vary from lender to lender and each application is handled on an individual basis.

Housing Expenses

Your montly housing costs include the mortgage principle, interest, taxes and insurance often abreviated PITI.

Generally speaking, to qualify for conventional loans, housing expenses should not exceed 26% to 28% of your gross monthly income.
For FHA loans, the ratio is 29% of gross monthly income.

Example

Annual Income		Gross Monthly Income	Maximum Conventional Loan Housing Expense	Monthly Housing Payments
$30,000	÷12	$2,500	X28%	$700

Long-Term Debt

Any expenses that extend 11 months or more into the future, such as car loans, are termed long-term debt.

For conventional loans, total monthly costs, including PITI and all other long-term debt, should equal no greater than 33% to 36% of your gross monthly income.
For FHA the ratio is 41%.

Budgeting for Your Home

When budgeting to buy a home, it is important to allow enough money for additional expenses such as:

maintenance
utilities
homeowner’s insurance
property insurance

Published on January 25, 2007

Read full article at realestate.com

Featured Local Company

Wells Fargo Reverse Mortgages

312-919-4749
511 W North Ave
Chicago, IL

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Regional Articles

- How much home can you afford? Illinois

Shopping for a home but not sure how much you can spend? Here's how to figure out your price range.

- Buying a Home Illinois
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- Buying a House Before You're 30 Illinois
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Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History