Qualifying Ratios The percentage of payment to income (P/I) and debt-to-income (D/I) that is used to measure the borrower’s capacity to repay the mortgage debt. Previous Post Quitclaim DeedMortgages that are insured or guaranteed by the federal government may allow more liberal qualifying ratios. Federal Housing Administration (FHA) loans may allow front ratios as high as 29 percent and back ratios of 41 percent (sometimes abbreviated as “29/41”), while Department of Veterans Affairs (VA) (link) loans may allow up to 41 A ratio exceeding 43% may be acceptable only if significant compensating factors, as discussed in HUD , are documented and recorded on Form HUD-92900-LT, FHA Loan Underwriting and Transmittal Summary. For those borrowers who qualify under FHA’s EEH, the ratio is set at 45%. Continued on next pageStep 2. Multiply your annual pretax income by the front-end ratio percentage allowed by your lender. For example, if your lender will let your mortgage expenses go up to 28 percent of your income, multiply $8,000 by to find that you can spend up to $2, to Calculate the Qualifying Ratio for a Home Loan Qualifying Ratios DefinitionLoan-to-Value (LTV) Ratio DefinitionFive Commercial Loan Ratios - C-Loans, most conventional, Fannie Mae loans, a borrower with good credit and at least a 20 percent down payment can qualify with a debt-to-income ratio up to 45 percent. FHA loans will usually go up

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