How big of a FHA Loan Can I afford?

Your monthly housing costs should not exceed 47% of your gross monthly income for a FHA Loan. Total housing costs often lumped together are referred to as PITI.

P = Principal

I = Interest

T = Taxes

I = Insurance


Monthly Income x .47 = Maximum PITI
$3,000 x .47 = $1,410 Maximum PITI

Your total monthly costs, or debt to income (DTI) adding PITI and long-term debt like car loans or credit cards, should not exceed 57% of your gross monthly income.

Monthly Income x .57 = Maximum Total Monthly Costs
$3,000 x .57 = $1,710
$1,710 total - $1,410 PITI = $300 Allowed for Monthly Long Term Debt

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