How It Works
Housing allowance=min(front-end ratio×gross monthly income, back-end ratio×gross monthly income−other debt). Subtract taxes, insurance and HOA to obtain principal/interest allowance.
Ratios are user-chosen or lender-quoted guidelines, not an underwriting approval. Excludes mortgage insurance, closing costs, reserves and credit-based rules.
Reference Sources
FAQs
How does this calculator work?
Housing allowance=min(front-end ratio×gross monthly income, back-end ratio×gross monthly income−other debt). Subtract taxes, insurance and HOA to obtain principal/interest allowance.
What assumptions should I check?
Ratios are user-chosen or lender-quoted guidelines, not an underwriting approval. Excludes mortgage insurance, closing costs, reserves and credit-based rules.