How much income do I need qualify for Kentucky Home Loan?
Kentucky Lender's Criteria: Debt-to-Income Ratios
The Debt-to-Income (DTI) ratio is a critical factor in determining whether you qualify for a mortgage along with credit, work history and assets. It measures how much of your gross monthly income is used to cover your monthly debt obligations.
For Most Kentucky Mortgage loans ,the debt to income ratio is centered around the front end ratio and back end ratio. The front end ratio will vary according to the different types of loans, and I will show them below. The backend ratio, which measures the new house payment along with your current monthly payments on the credit report along with any court ordered payments like child support, DTI limit is typically 45 to 50%
From a Kentucky Mortgage lender's perspective, your ability to purchase a home depends largely on the following factors:
Front-End Ratio
The front-end ratio is the percentage of your yearly gross income dedicated toward paying your mortgage each month. Your mortgage payment consists of four components: principal, interest, taxes and insurance (often collectively referred to as PITI) A good rule of thumb is that PITI should not exceed 31% of your gross income. If you make $100,000 a year, then your max house payment to include escrows for home insurance, mortgage insurance, property taxes would be $2583.00
Back-End Ratio
The back-end ratio, also known as the debt-to-income ratio, calculates the perce
