- Jumbo/Non Qm
Using the Illinois Mortgage Calculator With PITI, PMI, and DTI powered by Gustan Cho Associates will get you the most accurate estimated housing payment. There is no other mortgage calculator in today’s market that is universal and user-friendly like Gustan Cho Associates Illinois Mortgage Calculator. Most mortgage calculators will just give you principal and interest. It will not state your taxes, homeowners insurance, HOA fees, and private mortgage insurance. Gustan Cho Associates Illinois Mortgage Calculator will go well ahead of the competition. The Illinois Mortgage Calculator will also calculate your debt-to-income ratio in a matter of seconds. The debt-to-income ratio Illinois Mortgage Calculator will get you the most accurate front-end and back-end debt-to-income ratio on FHA, VA, Conventional, Jumbo, and non-prime mortgages. It is user-friendly and takes seconds to get you the most accurate data.
How To Use The Illinois Mortgage Calculator With Front-End and Back-End DTI
One of the most common first-time homebuyer FAQs at Gustan Cho Associates is how much home loan in Illinois do I qualify for and what is my monthly mortgage payment? Both of these questions can be answered by using the Illinois mortgage calculator. You will not just get the principal and interest payment like other mortgage calculators. With Gustan Cho Associates Illinois Mortgage Calculator, you will get your total housing payment consisting of principal, interest, tax, and insurance which is the PITI, PLUS the HOA dues if applicable to the property you are buying. As for the second FAQ of how much house can I buy in Illinois, the answer depends on the borrower’s front-end and back-end debt-to-income ratio.
Get Your Monthly Housing Payment
To get your monthly housing payment using the Illinois Mortgage Calculator, first enter the loan program. Then enter the purchase price followed by the down payment and interest rate. You will get the principal and interest sub-payment of your mortgage. To get all the components, let’s continue by entering your property tax and homeowners insurance into the respective boxes. You then enter the HOA dues if the property comes belongs to HOA. The private mortgage insurance and/or mortgage insurance premium, or VA funding fee is already populated when you checked off the loan program. You now get the total monthly mortgage payment which includes PITI, PMI, MIP, and HOA. Next, we will go and calculate your debt-to-income ratio.
Debt-To-Income Ratio Calculator Powered By Gustan Cho Associates
The debt-to-income ratio calculator is part of the Gustan Cho Associates Illinois Mortgage Calculator. The calculator is a very simple user-friendly power tool that will calculate your housing payment first. After it gets you the housing payment, the next step is to enter your income and total monthly debts. Within a matter of seconds, you will get your front-end and back-end debt-to-income ratio. All you need is the maximum debt-to-income ratio your lender has on their FHA, VA, Conventional, Jumbo, and/or non-prime loan programs. You can just enter the various different numbers when shopping for a home in Illinois and figure out whether or not you qualify and how much your monthly housing payment will be.
DTI Guidelines on FHA, VA, Conventional, Jumbo, and Non-QM Loans in Illinois
Every loan program has its own debt-to-income ratio requirements. The front-end DTI is the proposed estimated monthly housing payment divided by the borrower’s monthly gross income before taxes. The back-end debt to income ratio is the housing payment PLUS the sum of all minimum monthly payments divided by the borrower’s gross monthly before taxed income. Here are the general agency debt-to-income ratio guidelines:
- Fannie Mae and Freddie Mac do not have front-end debt-to-income ratio requirements on conventional loans.
- Only the back-end debt-to-income ratio is counted on conventional loans. Debt-to-income ratio on conventional loans is capped at 45% to 50% DTI.
- FHA loans front-end DTI is at 46.9% and back-end DTI is capped at 56.9% for borrowers with at least a 580 FICO score.
- Borrowers with credit scores under 580 FICO and down to 500, the maximum debt-to-income ratio is capped at 31% front-end and 43% back-end DTI.
- USDA loans cap is at 29% front-end and 41% back-end.
- Jumbo loans normally cap between 40% to 50% depending on the lender.
- Non-QM loans normally has a max back-end debt-to-income ratio cap of 50% DTI.
VA Debt-To-Income Ratio Guidelines
VA loans do not have a maximum DTI cap on VA loans. As long as the borrower has strong residual income, he or she should be able to get an approve/eligible per AUS. Gustan Cho Associates has no lender overlays on VA loans. We have closed countless VA loans with credit scores down to 500 FICO and debt-to-income ratio surpassing the 60% DTI level.
Manual Underwriting DTI Guidelines
VA and FHA loans are the only two mortgage loan programs allowing manual underwriting. FHA and VA manual underwriting guidelines are exactly the same. The debt-to-income ratio guidelines on manual underwriting on VA loans and FHA loans are the following:
- 31% front-end and 43% back-end DTI with no compensating factor
- 37% front-end and 47% back-end DTI with one compensating factor
- 40% front-end and 50% back-end DTI with two compensating factors
The above debt-to-income ratio are for manual underwrites for FHA and VA loans. However, VA loans have more lenient guidelines on manual underwriting than FHA loans. Mortgage underwriters can use underwriter discretion and bump the debt-to-income ratio up to 55% if the borrower shows strong residual income and strong compensating factors.