See " Housing Expense Ratio"
The ratio of fixed monthly expenses to monthly income. This ratio is used by lenders to determine how much to loan to a homebuyer.
the ratio of your fixed monthly expenses to your gross monthly income. It is used to determine how much you can afford to borrow. The fixed monthly expenses would include PITI along with other obligations such as student loans, car loans, or credit card payments.
A calculation that is used to determine if a borrower can qualify for a loan. The first ratio is the proposed housing expense, PITI , divided by income. And the second ratio is the housing expense plus additional obligations divided by income. These are usually expressed as whole number although they are percentages.
Percentage ratios that compare the borrowers' anticipated monthly fixed housing expense and total monthly obligations to the borrowers' stable monthly gross income for the purpose of evaluating the likelihood of meeting expenses involved in homeownership.
A ratio calculated by a lender to determine how much a potential buyer can borrow.
the percentage of units that are occupied by low-income households (households with monthly income equal to or less than either 50 or 60 percent of Area Median Income, as elected by the project developer. See Minimum Set-Aside.)
The ratio of your monthly expenses to your gross monthly income. Creditors use qualifying ratios to evaluate loan applications.
The ratio of the borrower's fixed monthly expenses to his gross monthly income. The Front-End Ratio is the percentage of a borrower's gross monthly income (before income taxes) that would cover the cost of PITI (Mortgage rincipal Payment + Mortgage nterest Payment + Property axes + Homeowners nsurance). In the case of a 28% Front-End Ratio a borrower could qualify if the proposed monthly PITI payments were 28% or less than the borrower's gross monthly income. The Back-End Ratio is the percentage of a borrower's gross monthly income that would cover the cost of PITI plus any other monthly debt payments like car or personal loans and credit card debt. Please note that qualifying ratios are only a rough guideline in determining a potential borrower's credit-worthiness. Many factors such as excellent or poor credit history, amount of down payment, and size of loan will influence the decision to approve or disapprove a particular loan. We urge all borrowers to discuss their particular situation with a qualified lender regardless of the outcome of any self-qualification exercise
The ratio of the borrower's fixed monthly expenses to his gross monthly income. Ratios are expressed as two numbers like 28/36 where 28 would be the Front-End Ratio and 36 would be the Back-End Ratio. The Front-End Ratio is the percentage of a borrower's gross monthly income (before income taxes) that would cover the cost of PITI (Mortgage Principal Payment + Mortgage Interest Payment + Property Taxes + Homeowners Insurance). In the case of a 28% Front-End Ratio a borrower could qualify if the proposed monthly PITI payments were 28% or less than the borrower's gross monthly income. The Back-End Ratio is the percentage of a borrower's gross monthly income that would cover the cost of PITI plus any other monthly debt payments like car or personal loans and credit card debt. Please note that qualifying ratios are only a rough guideline in determining a potential borrower's credit-worthiness. Many factors such as excellent or poor credit history, amount of down payment, and size of loan will influence the decision to approve or disapprove a particular loan.
Comparison of a borrower's expenses (housing or total debt) to their income.
Ratio used, by a lender, to determine how much a potential buyer can afford to borrow.