Housing Ratio
The housing ratio is the percentage of gross monthly income consumed by the total housing payment, the same as the front-end ratio.
What Housing Ratio means
Lenders compare it to program limits to ensure the payment is affordable. It includes principal, interest, taxes, insurance, and any HOA dues.
Florida example
A Florida condo buyer's housing ratio includes HOA dues on top of PITI. Adding $450 in dues can push the ratio past a program's comfort zone, so it's factored in early.
What it is
The housing ratio compares your monthly housing cost to your gross income. It is another name for the front-end ratio.
It shows how much of your pay the home takes.
Why it matters
A healthy housing ratio keeps your budget comfortable. Lenders set limits based on the loan program.
We find a payment that fits your life. Reach out and we will show a smart price range.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.