HOW MUCH CAN I AFFORD TO PAY?
HOW MUCH CAN I AFFORD TO PAY FOR A MONTHLY PAYMENT?
1. What is your GROSS HOUSEHOLD’S TOTAL monthly income? $____________________ (A)
*Be sure to include any income received by Social Security, Child Support, Pension, Retirement, etc.
**Be sure to include income received by ALL household members.
2. What are the household’s monthly debts? (do not include utility bills, insurance payments, etc.)
Car Payment(s): _______________ Child Support Payment(s):_______________
Student Loan Payment:_______________ Credit Card Payment: _______________
Child Care Payments: _______________ Other: _______________
TOTAL OF ALL MONTHLY PAYMENTS: $____________________ (B)
3. Front-end Ratio (34% of your gross household income)
$______________ X 34% = $_______________ (C) = Your front-end ratio
Write in figure from line(A)
4. Back-end Ratio (42% of your gross household income – your household debts):
$_______________ X 42% = $_______________ (D) Minus $_______________ = (E) $_______________ = Your back-end ratio
Write in figure from line(A) / Write in figure from line (B)
5. Income Available for a Monthly House Payment:
Compare Lines C and E: C = _______________ E = _______________
The lowest number when comparing lines C AND E, is your MAXIMUM allowable TOTAL House Payment (PITI).
Community Housing staff will calculate what price home you should be looking for based on this number.
This is why you must be as specific and accurate as possible with all of your income and debts.
*Be sure to include any income received by Social Security, Child Support, Pension, Retirement, etc.
**Be sure to include income received by ALL household members.
2. What are the household’s monthly debts? (do not include utility bills, insurance payments, etc.)
Car Payment(s): _______________ Child Support Payment(s):_______________
Student Loan Payment:_______________ Credit Card Payment: _______________
Child Care Payments: _______________ Other: _______________
TOTAL OF ALL MONTHLY PAYMENTS: $____________________ (B)
3. Front-end Ratio (34% of your gross household income)
$______________ X 34% = $_______________ (C) = Your front-end ratio
Write in figure from line(A)
4. Back-end Ratio (42% of your gross household income – your household debts):
$_______________ X 42% = $_______________ (D) Minus $_______________ = (E) $_______________ = Your back-end ratio
Write in figure from line(A) / Write in figure from line (B)
5. Income Available for a Monthly House Payment:
Compare Lines C and E: C = _______________ E = _______________
The lowest number when comparing lines C AND E, is your MAXIMUM allowable TOTAL House Payment (PITI).
Community Housing staff will calculate what price home you should be looking for based on this number.
This is why you must be as specific and accurate as possible with all of your income and debts.
A FEDERAL 501(C)3 CHARITABLE, NON-PROFIT HOUSING ORGANIZATION
PO BOX 410522 MELBOURNE, FL 32941-0522 OFFICE 321-253-0053 FAX 321-253-1575
PO BOX 410522 MELBOURNE, FL 32941-0522 OFFICE 321-253-0053 FAX 321-253-1575
