- Jumbo/Non Qm
Homebuyers shopping for a home in Kentucky can now use the Kentucky Mortgage Calculator powered by Gustan Cho Associates to compute PITI, PMI, MIP, HOA, and DTI in seconds. Gustan Cho Associates Kentucky Mortgage Calculator will help borrowers compute all the components of the mortgage payments breaking it down during the amortization term the following:
- Private Mortgage Insurance (PMI) / Mortgage Insurance Premium
- Homeowners Association Dues (HOA)
The Kentucky Mortgage Calculator powered by Gustan Cho Associates is the most accurate online mortgage calculator to help borrowers determine how much house they can afford. When shopping for a house, borrowers can determine how much more house they can get for their money by shopping for homes in areas with lower property taxes. As an added bonus, the Kentucky Mortgage Calculator has the debt-to-income ratio feature. We will cover the debt-to-income ratio mortgage calculator more in detail in the following paragraph.
How DTI Affects Your Buying Power on a Home
The debt-to-income ratio mortgage calculator will compute your front-end and back-end debt-to-income ratio in seconds. You can now calculate your front-end and back-end DTI in seconds. All mortgage loan programs have the minimum front-end and back-end debt-to-income ratio requirements. Gustan Cho Associates has no lender overlays on FHA, VA, and Conventional Loans. Jumbo and Non-QM loans are portfolio loans and the DTI is set by the individual lenders. Most jumbo loans normally have DTI caps between 40% to 50%. Most non-QM lenders cap their debt-to-income ratio at 50% DTI.
Fannie Mae, FHA, VA, and USDA Debt-To-Income Ratio Guidelines
The following are the debt-to-income ratio guidelines for Conventional, FHA, VA, Jumbo, and non-QM loans:
- Conventional loans do not have front-end debt-to-income ratio requirements and only a back-end DTI cap.
- The maximum debt-to-income ratio on conventional loans is capped at 45% to 50%.
- HUD, the parent of FHA, allows up to a 46.9% front-end and 56.9% back-end debt-to-income ratio for borrowers with at least a 580 credit score.
- For borrowers with credit scores between 500 FICO and 579 credit scores, the maximum credit scores on FHA loans is 31% front-end and 43% back-end.
- On Manual Underwriting, the debt-to-income ratio is 31% front-end and 43% back-end with zero compensating factor, 37% front-end and 47% back-end with one compensating factor, and 40% front-end and 50% back-end with two compensating factors.
- VA loans do not have maximum debt-to-income ratio requirements as long as the borrower can get an approve/eligible per the automated underwriting system
- Most mortgage companies will have lenders overlays on VA loans of 31% front-end and 43% back-end debt-to-income ratio
- Find out from your loan officer what the overlays on the VA loan you are applying for are
- The debt-to-income ratio on jumbo loans is dependent on each independent mortgage loan program
- The debt-to-income ratio on jumbo loans can vary between 40% to 50% depending on the mortgage lender
- The same goes with non-QM loans
- The debt-to-income ratio on non-QM loans depends on the independent mortgage lenders.
- Most non-QM lenders will cap the debt-to-income ratio at 50% DTI
Just knowing the above debt-to-income ratio cap, anyone can easily calculate their front-end and back-end debt-to-income ratio in a matter of seconds.
How Do You Calculate Your Monthly PITI?
You can calculate your monthly PITI using the Kentucky Mortgage Calculator in seconds. Besides the PITI, you can also compute your total monthly housing payment that including PMI, MIP, and HOA. Unlike other online mortgage calculators, Gustan Cho Associates Kentucky Mortgage Calculator will yield the true most accurate monthly mortgage payment and not just the principal and interest portion of your mortgage payment. As an added bonus, you can calculate your front-end and back-end debt-to-income ratios. Here is how you start:
Using Gustan Cho Associates Kentucky Mortgage Calculator To Calculate PITI
First, click on the loan program at the top of the Kentucky Mortgage Calculator: Conventional, FHA, VA, Jumbo, non-QM. Then enter the purchase price. Enter the down payment. The next step is to enter the interest rate. Check off the loan term. You will now get the principal, and interest component of your mortgage payment. Let’s move on to get your overall total mortgage payment. Enter your property taxes. Then enter your homeowner’s insurance premium. The private mortgage insurance and/or mortgage insurance premium is auto populated unless you want to manually enter it. The final step is to enter your homeowners association dues if applicable. You now have the total PITI, MIP, PMI, and HOA.
How Do You Calculate Your Front-End and Back End DTI?
After you get your monthly mortage payment, in two more steps, you will be able to compute your front-end and back-end debt-to-income ratios. Enter your monthly gross pre-tax income on the DTI mortgage calculator. Then enter the sum of your monthly minimum debt payments. The sum of all of your minimum monthly payments which include mortgage, auto, student loans, installment loans, and the total of the minimum credit card payments due should be part of the total. You then get your front-end and back-end debt-to-income ratios.