# WS4 by deiney

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```									Worksheet 4

List all the monthly debt obligations for your household (other than your current housing costs). If your Total Monthly Debt Payments equal more than 8% - or 10% of your gross monthly income, which you calculated on Worksheet 3, then your excess debt will reduce the amount of mortgage you can qualify for. This, in turn, means you must settle for a less expensive home. Chart 1, illustrates the maximum monthly debt that is acceptable at certain income levels. Average Monthly Payment
\$ Car payment Other installment loan payments with 10 or more monthly payments remaining; e.g., furniture, appliances, etc. \$

\$ Average monthly credit card payment(s) \$ Student loan payment Medical/health care payment (monthly payment for non-covered expenses) \$

\$ Alimony/child support payment Total monthly debt payments

\$

Source: Fannie Mae

Chart 1

Use this chart to find out how much existing monthly debt most lenders find acceptable for borrowers at your income level (based on the “36 percent” qualifying test). Then compare this figure with your actual monthly debt (see worksheet 4). If your actual debt exceeds the “allowable” debt, this will reduce the amount of mortgage you qualify for. Gross Annual Income
\$ 20,000 \$ 25,000 \$ 30,000 \$ 35,000 \$ 40,000 \$ 45,000 \$ 50,000 \$ 55,000 \$ 60,000 \$ 65,000 \$ 70,000

Allowable Debt Payments
\$ 133 \$ 167 \$ 200 \$ 233 \$ 267 \$ 300 \$ 333 \$ 367 \$ 400 \$ 432 \$ 467

Source: Fannie Mae

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