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Mortgage Glossary

Housing Ratio

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

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.

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HUD-1 Settlement StatementHybrid ARMImpound Account
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