{"id":131,"date":"2018-08-23T09:21:44","date_gmt":"2018-08-23T16:21:44","guid":{"rendered":"https:\/\/www.santiagofinancial.com\/blog\/?p=131"},"modified":"2020-10-20T00:21:03","modified_gmt":"2020-10-20T07:21:03","slug":"debt-and-housing-ratios-how-do-they-affect-your-loan","status":"publish","type":"post","link":"https:\/\/www.santiagofinancial.com\/debt-and-housing-ratios-how-do-they-affect-your-loan\/","title":{"rendered":"Debt and Housing Ratios- How Do They Affect Your Loan?"},"content":{"rendered":"<p><em>Debt and housing ratios are two important factors taken into account when qualifying for a loan. In part one, we will explore housing ratios:<\/em><\/p>\n<p><strong>Housing Ratios (Front-End Ratios)<\/strong><\/p>\n<p>The housing ratio is used to assess how much income is needed in order to adequately repay your loan. Lenders will look at the housing ratio as a measure of risk. The higher the housing ratio is, the higher the risk that a buyer may default on payments on their loan. Typically, we try and keep the housing ratio\u00a0in a range of 32-35%.<\/p>\n<p>For manufactured homes, the housing ratio can be calculated using three different figures.<\/p>\n<ul>\n<li>Monthly home payment\u00a0(This includes: <strong>P&amp;I, <\/strong><strong>TAX IMPOUNDS \u00a0<\/strong>and <strong>INSURANCE IMPOUNDS<\/strong>.)<\/li>\n<li>Monthly space rent\u00a0(This amount will vary depending on the Mobile Home Park<\/li>\n<li>Gross monthly income (How much you make per month before taxes)<\/li>\n<\/ul>\n<p>With these three components, we can calculate what percentage of housing ratio you will have.<\/p>\n<p>For example, lets say your monthly home payment is $720 per month, your space rent is $800 per month.\u00a0We&#8217;ll use $4,350\u00a0as your income.\u00a0To find your housing ratio,\u00a0all you need to do is add, then divide.<\/p>\n<p>Housing Ratio (35%)=\u00a0\u00a0($720+$800)\u00a0 \u00f7 $4,350<\/p>\n<p>By looking at the diagram below, we can see how much income is needed to qualify at a 35% housing ratio.<\/p>\n<p><a href=\"https:\/\/blog.santiagofinancial.com\/wp-content\/uploads\/2018\/08\/0001-e1533587318585.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-134\" src=\"https:\/\/blog.santiagofinancial.com\/wp-content\/uploads\/2018\/08\/0001-e1533587318585.jpg\" alt=\"\" width=\"608\" height=\"467\" srcset=\"https:\/\/www.santiagofinancial.com\/wp-content\/uploads\/2018\/08\/0001-e1533587318585.jpg 3300w, https:\/\/www.santiagofinancial.com\/wp-content\/uploads\/2018\/08\/0001-e1533587318585-300x231.jpg 300w, https:\/\/www.santiagofinancial.com\/wp-content\/uploads\/2018\/08\/0001-e1533587318585-768x591.jpg 768w, https:\/\/www.santiagofinancial.com\/wp-content\/uploads\/2018\/08\/0001-e1533587318585-1024x788.jpg 1024w\" sizes=\"(max-width: 608px) 100vw, 608px\" \/><\/a><\/p>\n<p>If you want to find out how much of a monthly payment you can afford, simply take your income and multiply it by 35%.<\/p>\n<p>Lenders may allow for a higher ratio based on disposable income. For more information on disposable income, find out more about our loan\u00a0programs and to see if you qualify for a manufactured home loan, contact our office at 714-731-8080. You can also reach out to us via email at info@santiagofinancial.com<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Debt and housing ratios are two important factors taken into account when qualifying for a loan. In part one, we will explore housing ratios: Housing Ratios (Front-End Ratios) The housing ratio is used to assess how much income is needed in order to adequately repay your loan. Lenders will look at the housing ratio as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":71736,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Debt and Housing Ratios- How Do They Affect Your Loan? - Santiago Financial, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.santiagofinancial.com\/debt-and-housing-ratios-how-do-they-affect-your-loan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Debt and Housing Ratios- How Do They Affect Your Loan? - Santiago Financial, Inc.\" \/>\n<meta property=\"og:description\" content=\"Debt and housing ratios are two important factors taken into account when qualifying for a loan. 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