FHA 31/43 vs Conventional 28/36 DTI Calc

Compare FHA (31/43 DTI) and Conventional (28/36 DTI) maximum borrowing limits

Income & Financing Details

Qualification & Max Purchase

Maximum Qualifying Home Price
$298,474
Maximum Loan Pre-Approval: $283,474
$2,325 / mo
Max Qualifying PITI Payment
5.0%
Down Payment Ratio
Gross Monthly Income: $7,500.00 / mo
Principal & Interest (P&I): $1,791.75 / mo
Estimated Property Taxes: $298.47 / mo
Homeowners Insurance: $116.67 / mo
Private Mortgage Insurance (PMI): +$118.11 / mo (< 20% down)< 20% down)

Mortgage Pre-Approval Comparison by Tier & Income

Gross Income Conv (28/36) FHA (31/43) VA (41% DTI) Max PITI (Conv)
$60,000 $153,075 $198,310 $185,386 $1,200
$80,000 $230,621 $265,086 $273,702 $1,800
$100,000 $299,551 $331,861 $362,018 $2,333
$120,000 $359,864 $398,637 $450,334 $2,800
$150,000 $450,334 $498,801 $582,809 $3,500
$200,000 $601,118 $665,740 $803,599 $4,667

Key Fannie Mae, HUD/FHA & CFPB Underwriting Checkpoints

  • Fannie Mae Selling Guide (B3-6-02) & QM Rules: Conventional loans establish baseline qualifying limits of 28% front-end and 36% back-end DTI, extendable up to 45%–50% with automated underwriting compensating factors.
  • HUD Handbook 4000.1 (FHA Underwriting): FHA financing expands accessibility with higher 31% front-end and 43% back-end benchmarks with down payments as low as 3.5%.
  • Homeowners Protection Act (12 U.S.C. § 4901): Private mortgage insurance (PMI) is legally cancellable at 80% LTV and automatically terminates at 78% LTV, saving hundreds monthly.

Explore Mortgage Qualification Scenarios & Guidelines

📊 Mortgage Pre-Approval by Household Income

$60,000 Income (Max Home Price & PITI) $80,000 Income (Max Home Price & PITI) $100,000 Income (Max Home Price & PITI) $120,000 Income (Max Home Price & PITI) $150,000 Income (Max Home Price & PITI) $200,000 Income (Max Home Price & PITI)

📌 Underwriting DTI Rules, FHA/VA & 20% Down Guides

FHA (31/43 DTI) vs Conventional (28/36 DTI) VA Loan Qualification ($0 Down • 41% DTI) 28/36 Qualifying DTI Rule & Debt Impact 20% Down Payment & PMI Elimination Guide

How Mortgage Qualification Works

1

DTI Evaluation

Lenders restrict your maximum monthly mortgage payment so total debts stay within 36% to 45% of income.

2

Full PITI Sum

Approval amounts factor in principal, interest, local property taxes, homeowners insurance, and PMI.

3

Down Payment Power

Reaching a 20% down payment eliminates PMI entirely, reducing monthly fees and boosting pre-approval.

Frequently Asked Questions

What are the primary DTI differences between FHA and Conventional loans?

Conventional loans typically adhere to 28% front-end and 36% back-end DTI limits, whereas FHA guidelines permit more lenient baseline ratios of 31% front-end and 43% back-end.

When should a homebuyer choose FHA over Conventional financing?

FHA loans are advantageous for borrowers with credit scores below 680, higher existing debts, or lower down payments (minimum 3.5%), despite mandatory upfront and annual MIP fees.

Can FHA mortgage insurance be canceled after building equity?

Unlike Conventional PMI which must cancel at 80% LTV under federal law, FHA annual MIP typically lasts the entire loan term if putting down less than 10% at origination.