What underwriters actually measure
They look at the whole housing payment against your income: principal, interest, taxes, insurance, and mortgage insurance if the loan has it.
That is why two buyers with the same income and the same price get different answers in different counties. The price is identical; the payment is not.
- Principal and interest, from the loan amount and rate
- Property tax, which varies by county and city
- Homeowner's insurance
- Mortgage insurance, which depends on the program
- Any HOA dues
The local numbers that move it
Shelby County runs about 1.30% of value a year in property tax. DeSoto is 0.75%. Fayette is 0.60%. On a $300,000 house the monthly difference between the top and bottom is roughly $175.
Over a thirty year loan that is more than $60,000. It is the largest single lever in this market and it is decided by where you look, not by your credit.
Get the number before you shop
The calculator on the home page uses the real rate for your ZIP rather than one assumption for everywhere, and it shows the mortgage insurance for whichever program you pick.
It is an estimate. The number that matters comes from a conversation, and it takes about ten minutes.
Questions people ask
What debt to income ratio do I need?
There is no single number. Programs differ and compensating factors matter, which is why a file gets looked at rather than scored against a rule of thumb.
Does my student loan count against me?
Yes, though how the payment is calculated varies by program, which sometimes makes a large difference.
Should I get preapproved before looking?
Yes. It tells you what to shop for and it makes your offer credible when you find it.
This is not a commitment to lend. All loans are subject to credit approval, income and asset verification, property appraisal, and program guidelines. Rates, terms, programs and eligibility are subject to change without notice.
Get your numbers
Six questions. Jason answers personally, usually the same day.
Thanks — that is on its way to Jason. He will reach out shortly with your numbers.