FHA Loan Requirements for Debt-to-Income Ratios In California is a post from: FHA,VA and Conventional Home Loans in all 50 States
A very important FHA loan requirement to successfully get approved for a FHA loan in California is the debt-to-income ratio (DTI). There are two types of types of DTI that are looked at with an FHA loan, the front and the back ratios.
The front ratio is your total monthly housing debt (mortgage+property taxes+insurance+hoa dues if applicable) divided by your monthly income. So for example if you make $5,000 per month and your total housing payment is $2,000 per month, your front ratio would be 40%. This is acceptable to qualify for a FHA loan in California. The maximum front ratio is 46.9% to be approved for a FHA loan.
The back ratio is your total monthly housing debt PLUS all the other debt that shows up on a credit report (auto loans, student loans, credit cards, other rental property, etc…). So let’s say you make $5,000 per month, the house you want to buy has a $2,000/mo housing payment and you have a $300/mo auto loan and a $100/mo minimum monthly credit card payment. So this would make your total debt $2,400/mo. $2,400 divided by $5,000 equals 48% back ratio. This is also acceptable for a FHA loan mortgage in California. You can go up to a 56.9% back ratio and still qualify for a FHA home loan in California.
So I hope this gives you a basic understanding of the debt to income ratio calculation in qualifying for a FHA loan in California. Please don’t hesitate to email at homeloan8@gmail.com or call at 858-922-7899 if you would like to get approved for a FHA loan in California or have any questions.
Below are some highlights of FHA loans in California:
- FHA loan down payment is only 3.5% and this can be a gift from a relative
- FHA loan requirements allow for a NON-occupying co-borrower to help you qualify
- FHA loan limits throughout most of Coastal California will be dropping to $625,000 in areas such as San Francisco, Oakland, San Jose, Los Angeles, Orange County, Anaheim, Santa Ana. San Diego FHA loan limits will be dropping to $546,250. Sacramento $474,950, Fresno $281,750, Bakersfield $271,050, Redding $273,700.
Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
homeloan8@gmail.com
Related posts:
- Understanding the Debt-to-Income Ratio to Qualify for FHA Loans
- The Importance of Debt-To-Income Ratio When You Apply For a FHA Loan
- FHA Loan Requirements for Debt Obligations
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