What is a good debt-to-income ratio for a mortgage?
Most conventional lenders prefer to see your total monthly debt payments stay below 43 percent of your gross monthly income, though some loan programs allow higher ratios depending on compensating factors like credit score, down payment, and reserves. This ratio includes your future mortgage payment with principal, interest, taxes, insurance, and HOA dues, plus all recurring debts like car payments, student loans, credit cards, and other obligations. FHA loans may allow ratios up to 50 percent or slightly higher in some cases. Your front end ratio, which is just the housing payment alone, is typically capped around 28 to 31 percent. The specifics depend on your situation and a licensed lender should confirm, and Jon can connect you with one.
Specifics depend on your situation and should be confirmed with a licensed lender. Jon can connect you with one: text (623) 826-0888.
More on affordability and budgeting
- How much house can I afford?
- How much should I budget for maintenance and repairs each year?
- Should I pay off my car loan or student loans before buying a house?
- How much should I save besides the down payment?
- What will my total monthly payment be with taxes, insurance, HOA and PMI?
- What are typical utility costs in Phoenix for electric, water, gas and trash?
Meet Jon Hegreness
Jon Hegreness
REALTOR / Associate Broker · Howe Realty
AZ License BR540940000
Full-time Phoenix North Valley REALTOR and Associate Broker with 24 years in Arizona residential real estate. A negotiator and problem solver who works the way you would want a friend in the business to work: direct, on your side, and steady through the parts that get complicated.