The Front End Ratio is the proposed PITI (principle, interest, taxes, and insurance) divided by the borrower's qualifying income. The Back End Ratio is the proposed PITI plus monthly recurring debt divided by the qualifying income. FHA ratios are 29% to 41%, while most Conventional ratios are 33% to 38%. FHA, VA, and Conventional loans now have computer underwriting that does allow higher ratios depending on a variety of circumstances.

The ratios of a consumer's proposed monthly mortgage payment, and proposed overall monthly debt to his or her gross monthly income. These ratios must fall within specific ranges for specific types of mortgages.

How your total housing expenses compare to your total gross income; also, how your total housing expensesâ€”plus all other debtâ€”compares to your total gross income.

Measurement (expressed as a percentage) that compares your monthly liabilities to your gross income. The Housing Ratio is your proposed mortgage payment divided by your gross monthly income. The Debt Ratio is all you monthly liabilities (including your mortgage) divided by your gross monthly income. Underwriters will use these ratios to see if your income supports the mortgage payment. Underwriters are usually more flexible on loans with higher down payments and less flexible on low down payment loans.

The ratio of your total gross income to your total housing expense, including principal, interest, taxes and insurance, and also the ratio of your total gross income to your total housing expense plus all other debt.

These are the percentages used by your lender to determine whether you qualify for a loan. The lender looks at two ratios: 1) your monthly income divided by your monthly housing expense; 2) your monthly income divided by your total debt obligations (this includes your mortgage payment as well as whatever other monthly expenses you have - car payments, credit cards, etc.).

There are two ratios used to qualify you for a mortgage. The first is called the front-end ratio, and is calculated by dividing your new total monthly mortgage payment by your gross monthly income. Typically, this ratio should not exceed 28%. The second is called the back-end, and is equal to your new total monthly mortgage payment plus your total monthly debt divided by your gross monthly income. Typically, this ratio should not exceed 36%. However, there are numerous loan programs available where debt ratios can go as high as 45-50% or more.

Guidelines applied by the lender during underwriting a mortgage loan application to determine how large a loan to grant to an applicant. The ratios that lenders use are generally the Loan-to-Value Ratio, Housing-to-Income Ratio and Debt-to-Income Ratio.

The percentages of mortgage payment debt to gross monthly income and total debts to gross monthly income.

A ratio used as an underwriting guideline to determine the amount of debt a borrower may have compared to their income (e.g. Borrower's house payment divided by gross income). A ratio may be used to calculate the total allowable debt or the monthly housing portion. It is expressed as a percent.

How a buyers housing expense and debt picture relates to their income.

Ratios are your business' "scores" that come from your Income Statement and Balance Sheet, not the Cash Flow Statement.