Buyer Information Monthly income? $ Monthly expenses? $ Loan Information Loan term (years)? Interest rate? % Down payment? $ Annual property taxes? $ Annual home insurance? $ Lending Ratios Loan-to-value ratio? % Housing ratio? % Debt-to-income ratio? % Printer-friendly version Monthly Payment Information Purchase Price Principal & Interest Property Taxes Insurance Monthly Payment Chart Table Home Affordability by Lending Ratios Lending Ratio Purchase Price Loan to Value Ratio Housing Ratio Debt Ratio Submit Your ability to obtain a loan for a new home purchase is based on a number of factors. Lenders typically make lending decisions based on three key ratios: (1) Loan-to-value ratio (LTV), which represents the ratio of the loan amount to the value of the home. Lenders ideally want to see an 80% LTV, meaning a 20% down payment is preferred; (2) Housing Ratio, which represents the percentage of your total income that goes towards housing expenses; and (3) Debt-to-Income Ratio, which represents your total debt payments, plus housing expenses as a percentage of your total income. Lenders will typically look at any of these ratios as constraints, meaning once any of these ratio limits is reached, the amount of the loan will be capped.