The monthly housing expense includes principal, interest, taxes, hazard insurance, PMI (private mortgage insurance) and homeowner's association dues (if applicable).

the bottom ratio is calculated in the following way:

Monthly Housing Expense + All Other Monthly Debts -:- Gross Monthly Income

All other monthly debts include car payments, revolving charge accounts, real estate loans, student loans, credit union loans, child support and alimony, etc.


If you don't meet the required qualifying ratios on one program, you may be able to meet them on another.  FHA and VA have very different guidelines, for example, as does the Community Homebuyers program.  Your Loan Officer is an expert at determining the best loan for you and they can answer any questions you might have.

In addition to meeting ratio guidelines, underwriters like to see compensating factors or other facts about the loan that are good.  Compensating factors include:

                              1.  Lots of money left over after close of escrow
                              2.  Verified net worth high enough to repay  the entire loan
                              3.  The new payment is only slightly higher than current rent or mort
                                   gage payment.
                              4.  Increasing earning capabilities
                              5.  Excellent ability to save
                              6.  Very large cash downpayment

**Remember, never disqualify yourself!  These web pages are designed to help you understand the overall loan process.  In a loan transaction there are many variables.  Please take the time consult with your Soundview Mortgage professional loan officer.  Our many years of training and knowledge of loan placement has resulted in an impressive record of success.  LET US HELP!