Mortgage prequalification calculator: Conventional vs FHA
A starting budget for the lender conversation. Compare Conventional and FHA debt-to-income assumptions from income and monthly debt.
Prequalification calculator
Nothing you type here is sent anywhere.
| Housing DTI assumption | 28% |
|---|---|
| Total DTI assumption | 36% |
| Monthly housing budget (estimate) | $2,600 |
| Loan before tax, insurance and fees (estimate) | $411,348 |
Estimates for illustration. Check the assumptions before using these figures. Lenders set eligibility and DTI limits. This is not a loan approval.
Have the buyer's budget on your phone at the first meeting
The same calculator is in My Virtual Boss, next to today's schedule, your follow-ups and owner lookup. See it in the app
Free to start. Premium in the app: $24.99/month.
How the prequalification estimate works
Lenders compare the buyer's debts with gross monthly income. The calculator uses two common planning ratios for each program and keeps the lower result.
- Housing DTI assumption
The share of gross monthly income the housing payment can take: 28% for Conventional and 31% for FHA in this calculator.
- Total DTI assumption
The share of income all monthly debts can take, housing included: 36% for Conventional and 43% for FHA. Car loans, student loans and card minimums count. Utilities don't.
- Monthly housing budget
The lower of the two limits. If the buyer has a lot of debt, the total ratio sets the budget.
Lower of: income × housing % or income × total % − debts
- Loan before tax, insurance and fees
The loan that budget would carry as principal and interest, at the rate and term you enter. In real underwriting, taxes, insurance and any HOA or mortgage insurance come out of the budget first, so the true figure is lower.
Housing budget ÷ monthly payment per $1 borrowed
Worked example: $10,000 a month
Gross income of $10,000 a month, $1,000 in monthly debt payments, 6.5% for 30 years.
- Conventional housing limit, 28%
- $2,800
- Conventional total limit, 36% minus debts
- $2,600
- Conventional loan before tax and insurance
- $411,348
- FHA housing limit, 31%
- $3,100
- FHA total limit, 43% minus debts
- $3,300
- FHA loan before tax and insurance (estimate)
- $490,454
For Conventional, the debt sets the budget at $2,600. For FHA, the housing ratio sets it at $3,100.
Prequalification is not approval
These ratios are planning numbers. Lenders set the real limits, and automated underwriting can allow higher ratios for some buyers. Credit, reserves and the property all matter.
Use the estimate to set a sensible search range, then send the buyer to a lender for a preapproval.
Prequalification in the app
The app's Prequalified Loan Calculator goes further. It adds property tax, insurance, HOA, closing costs and the funds the buyer has, then shows Conventional and FHA results on two tabs.
- Maximum Loan Amount, Maximum Home Price and Monthly Housing Payment
- A Debt-to-Income Analysis that flags when a ratio exceeds the limit
- A Cash to Close Analysis with minimum down payment and any shortfall
- Suggested seller concessions when the buyer is short on cash
on the Tools tab. Prequalification Calculator is one of them.
When agents run prequalification
The first buyer meeting
Get a starting range before you set up searches, so the first showing isn't out of reach.
When the buyer has a car payment
Add the $600 payment to monthly debt and show what it does to the budget. It's often the reason FHA comes up.
Before the lender call
Walk in knowing the rough number, so the lender conversation starts in the right place.
Run the numbers here. Run your day in the app
- Today's schedule, already plannedOpen the app and today's schedule is waiting, from 8:00 AM to 7:00 PM. It says what to work on and when. Add your own tasks alongside it.
- Follow-ups in your MVB CRMSet a date and time for each follow-up. When it's due, the app asks “Did you follow up?” with a push reminder. Call, text or email in one tap.
- Open-house sign-ins, with the Starter KitWith the Digital Lead Capture Kit, visitors tap the registration card to submit their details on their own phones. Review submissions and manage your follow-up in the app.
- Owner lookup, price shown in the appOwner phone numbers and email for a property, charged only when the owner is found.
- Robert's trainingRobert Ernst, a Florida broker and real estate instructor, on video for each part of the day. Part of Premium.
Free to start. Premium in the app: $24.99/month.
3 follow-ups and 6 high-priority tasks today
Questions agents ask
What's the difference between prequalification and preapproval?
Prequalification is an estimate from what the buyer tells you. Preapproval comes from a lender after checking credit, income and assets. Sellers expect a preapproval letter with an offer.
What debt-to-income ratio does FHA use?
This calculator uses 31% for housing and 43% for total debt, common FHA planning ratios. Lenders can approve higher ratios in some cases, so treat these as a starting point.
What ratio does a Conventional loan use?
This calculator uses 28% for housing and 36% for total debt. Many lenders allow more, depending on credit and reserves.
Does this calculator check credit?
No. Nothing you type here is sent anywhere, and no credit is pulled. It's math on the numbers you enter.
What income should I enter?
Gross monthly income, before taxes, for everyone on the loan. For self-employed buyers, lenders usually look at tax returns, so ask the lender how they'll count it.
Related tools
Start the buyer conversation with a number
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