So you've determined that homeownership is right for you. Now what? Before you begin your home search, determine how much home you can afford. Knowing what price range you can afford can help narrow down your potential home choices. Here are the factors that determine how much home you can afford: Yearly Income-FHA considers 31% an acceptable risk for the debt-to-income ratio (DTI). The DTI includes the principal and interest, escrow deposit for taxes and insurance, mortgage insurance premium, homeowner's association dues, ground rent or special assessments, and secondary financing payments. The total fixed payment ratio of 43% is considered (0 comments)