Maximum loan you can qualify for
This will calculate: the largest loan a buyer can qualify for, worked backward from their income, their existing monthly debts, and the lender's qualifying ratios.
You get two answers. Scenario A uses only the housing payment — principal, interest, taxes, insurance and HOA. Scenario B also subtracts car loans, credit cards and other long-term debt.
Most lenders will use the lower of the two. The default ratios are 28% and 36%, but you can type in whatever ratios your lender uses.
PLEASE NOTE: Many lenders will use the LOWER of the 2 scenarios. However, some lenders will loan based on the higher scenario. Also please note that some lenders use other ratios. (You can input different percentages if you like) Please realize that the above data is for information purposes only and the accuracy of the figures are not guaranteed. Each transaction will vary depending upon your personal circumstances. You should always obtain personal advice from qualified professionals before entering into a transaction.