when determining the maximum amount of mortgage credit available to a borrower an underwriting analysis includes hypothetical scenarios of monthly mortgage payments and the potential effects on both the housing expense ratio and the debt to income ratio 
lending standardsa housing expense ratio higher than the standard 28 may be acceptable to lenders if your other financial factors such as a low loan to value ratio and or an excellent credit history are strong if you apply jointly with a co borrower you can lower a housing expense ratio a variable rate loan that starts with smaller monthly payments may help you get approved for a loan by lowering your initial housing expense ratio borrowers thinking of a potential home loan purchase may want to use the 28 and 36 levels when planning their monthly budgets keeping monthly housing expenses at 28 of a borrower s income can help to create an estimate for how much a borrower can afford to pay monthly on a mortgage generally keeping total debt to income below 36 can also make it easier for you to get other credit or loans including a mortgage 5