Example: $2,600 - $650 = Step 4: Use a Mortgage Table
Multiply gross income by 0.36 (36%) and subtract existing monthly debts. calculate home buying power
Standard for many first-time buyer conventional loans. Example: $2,600 - $650 = Step 4: Use
Your total monthly debt payments (mortgage + car loans + student loans + credit cards) should not exceed 36% of your gross monthly income. 2. Down Payment Amount 3.5%: Minimum for FHA loans. calculate home buying power
Example: ($8,333 x 0.36) - $400 car payment = Step 3: Factor in "Hidden" Costs