Lenders generally say that housing expenses should not exceed 25 percent to 28 percent of the homeowner's gross monthly income. The housing expenses include monthly mortgage principal, interest payments, property taxes and homeowner’s insurance. For Federal Housing Administration (FHA) loans, this figure is not to exceed 29 percent of the homebuyer's gross monthly income. If you have no idea of what your property taxes or homeowners insurance will be, the following median statistical meanings can be used. According to the American Housing Survey data the median annual taxes per $1,000 value averages $12. The median property insurance costs per month averages $30.
You can count as income not only your steady employment but also:
* overtime bonus and commissions (average for one - two years);
* net income from self employment;
* social security, veteran's benefits and retirement;
* alimony, child support and income from public assistance programs;
* workmans's compensation or permanent disability payments;
* interest and dividend income; rental income after deducting expenses and debt payments;
* income from trusts, partnerships, professional corporations and so on.
