Calculating what you can afford:

1) How much house can you afford? The VA and FHA and most bank guidelines are very similar. They don’t want your total monthly payments to exceed 41% of your before tax income. To determine your monthly income you can do one of the following: Take your hourly income X 173 If you are paid every other week, multiply by 26 and then divide by 12 If you have your yearly income from your W2, simply divide by 12 Now take your monthly income and multiply by .41. This is the maximum for your monthly payments. From this maximum, subtract your current payments – car payments, loan payments, minimum credit card payments, child care expenses, etc. Do not subtract insurance costs or living expenses (utilities, food, gasoline, clothing, etc.). Divide this by .008 Add to this any downpayment you will make on the house. This is the approximate house price you can afford.

2. Example: Husband earns $14.57 per hour X 173= $2520.61

3) Too complicated? Just call or visit us. We have it all on our computer and can give you an answer in seconds.