Patriot Lending Services

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Basic Mortgage Qualification

This calculates the required income you will need to qualify for the home listed below with the following information filled in.

Property Information

Sale Price of Home:	$
Annual Home Insurance:	$

Mortgage Information

Down Payment:	$
Interest Rate:	%
Annual Property Tax:	$
Term in Years:
Monthly debt (car/student loan, credit cards, etc):	$
Front Ratio:
Back Ratio:

Your Results

Total monthly loan payment: ( PI ($880.52) + Home Insurance ($0) + Property Tax ($0) )	$	880.52
Total monthly debt payment: ( Loan Payment ($880.52) + Debt Payments ($0) )	$	880.52
Total monthly PMI payment: (0.9% a year on $120000 loan, since your downpayment was 0%)	$	90
35% Qualifying income:	$	33274.97
45% Qualifying income:	$	25880.53

Explanation

PMI appears above if your down payment is less than 20% of your home value. That means you must pay an extra .32% to .90% a year until you break the 20% criteria. They also add that into the income requirement.

The Front End Ratio (35%) income is based on PITI (Principal + Interest + Tax + Insurance) or more specifically, the mortgage principal plus interest amount plus your monthly property tax and home insurance the lender typically holds in an escrow account for you. This monthly amount is listed above as Total monthly lender payment.

The Back End Ratio (45%) income is based on the PITI (Principal + Interest + Monthly Property Tax + Monthly Home Insurance + Monthly Debt). This total amount is the sum described above as Total monthly debt payment.

As long as your total income (salary + interest income + rental income + dividend income) meets ONE of the two incomes you will probably qualify, and if it meets both you are in even better shape.

The accuracy and use of this calculator is not guaranteed.