Homebuyers in Louisiana can make computing how much they can afford much simpler using the Louisiana Mortgage Calculator powered by Gustan Cho Associates. The Lousiana Mortgage Calculator is user-friendly and will give you the complete most accurate monthly housing mortgage payment than any other mortgage loan calculator. You will compute your PITI, PMI, MIP, and HOA in just seconds. First, check off the type of mortgage loan program at the top of the calculator. Then enter the purchase price followed by the interest rate. You will then check the amortization term between 5 years to 30 years. Then enter the property tax and homeowners’ insurance followed by the homeowners association dues if applicable. The PMI and MIP will auto-populate unless you want to manually enter your own factor and/or number. The calculator will give you the total monthly mortgage payment consisting of all components of PITI, PMI, MIP, and HOA.

DTI Guidelines on Conventional, FHA, VA, USDA, Jumbo, and Non-QM Loans

Conventional loans, FHA home loans, VA mortgages, Jumbo loans, and non-QM mortgage loans all have their own debt-to-income ratio guidelines. Fannie Mae and Freddie Mac have no front-end debt-to-income ratio requirements on conventional loans. Fannie and Freddie DTI guidelines are 45% to 50% on conventional loans. HUD, the parent of FHA loans has a 46.9% front-end and 56.9% back-end debt-to-income ratio cap on FHA loans for borrowers with higher than 580 credit scores. For borrowers with under 580 credit scores, the maximum debt-to-income ratio guidelines are 31% front-end and 43% back-end debt-to-income ratio cap. VA loans do not have maximum debt-to-income ratio guidelines as long as the borrower can get an approve/eligible per automated underwriting system (AUS). Borrowers can get an approve/eligible per AUS on VA loans with high DTI with strong residual income.

FHA and VA DTI Manual Underwriting Guidelines

FHA and VA manual underwriting guidelines have 31% front-end and 43% back-end with zero compensating factors, 37% front-end and 47% back-end with one compensating factor, and 40% front-end and 50% back-end with two compensating factors. USDA requires a 29% front-end and 41% back-end debt-to-income ratio on USDA loans. Jumbo loans and non-QM loans do not have an agency debt-to-income ratio requirement. Debt-to-Income Ratio on jumbo and/or non-QM mortgages are set by the individual mortgage lenders. Most jumbo lenders have a 40% to 50% debt-to-income ratio cap. Most non-QM lenders will cap their debt-to-income ratio at 50% DTI.

Calculate Your DTI Using The Louisiana Debt-To-Income Ratio Mortgage Calculator

Home buyers can easily calculate their front-end and back-end debt-to-income ratio using the Louisiana Debt-To-Income Ratio Mortgage Calculator in seconds. You first need to calculate your housing payment using the Louisiana Mortgage Calculator powered by Gustan Cho Associates. The housing payment will populate the DTI mortgage calculator. Once you are ready to compute your DTI, the mortgage payment will automatically populate the debt-to-income ratio mortgage calculator which you will see on the first box that states Monthly Mortgage Payment. Next, add the sum of all monthly minimum payments from all your monthly bills that are from traditional credit tradelines. Examples of monthly bills included for debt-to-income calculations are auto payments, student loans, credit card minimum payments, and any other debts that report to the credit bureaus. Utility bills, cellular and landline, internet, cable, personal insurance, school/college, and other bills that could potentially report to the credit bureaus. Once you have the total, enter that number on the second box of the DTI mortgage calculator that says Minimum Monthly Debt Payments. The last and final step is to enter your monthly and/or annual gross pre-tax income on the box that states Gross Income per Month or Year. You will then get the front-end and back-end debt-to-income ratio. Below your front-end and back-end, the debt-to-income ratio will be the maximum allowable debt-to-income ratio numbers for the loan program you checked off.