Housing Expense Ratio
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
The housing expense ratio, or front-end ratio, compares your total monthly housing payment to your gross monthly income.
What Housing Expense Ratio means
It includes principal, interest, taxes, insurance, and any HOA dues. Lenders use it alongside the back-end ratio to judge affordability. Limits vary by program, often around 28% to 31%.
Florida example
A buyer earning $8,000 a month with a $2,200 housing payment had a 28% housing expense ratio, right at the conventional guideline.
What it is
The housing expense ratio compares your monthly housing cost to your gross income. It is the same as the front-end ratio.
It shows how much of your pay the home takes.
Why it matters
A healthy ratio keeps your budget comfortable and helps you qualify. Lenders set limits by program.
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