How Much Can You Afford? Kansas

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

Local Companies

Alpha Mortgage
013-498-8589 X 228
10901 Lowell
Overland Park, KS
Priority Mortgage
(316) 721-7700
900 N Tyler Rd Ste# 12
Wichita, KS
First Horizon Home Loans
(316) 264-9969
800 E 1st St N Ste 310
Wichita, KS
All Credit Mortgage
(316) 266-4859
333 N Waco St
Wichita, KS
MetLife Home Loans
(316) 264-9969
800 E 1st St N Ste 310
Wichita, KS
1st Metropolitan Mortgage
888-913-GREEN
7201 W 129th Street
Overland Park, KS
BankMortgageSolutions
866-603-3208 x 7858
14425 College Blvd ste 100
lenexa, KS
Mortgage Centre
(316) 682-1667
12221 E Central Ave
Wichita, KS
Mortgage Centre
(316) 684-0285
10811 E Harry St
Wichita, KS
Pioneer Bank & Trust
(316) 721-9660
2118 N Tyler Rd
Wichita, KS

provided by: 

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

Alpha Mortgage

013-498-8589 X 228
10901 Lowell
Overland Park, KS
www.ifyouneedmoney.com

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