Printable cheat sheet

Texas mortgage qualifying ratios cheat sheet

Built for Texas sales agent exam prep. Separate housing payment from total monthly debt before using front-end or back-end ratios.

Reviewed August 30, 2026 · CFPB debt-to-income guidance · Pearson VUE outline #094401

Use the calculator
Loan amountPrice - down payment

Calculate loan amount before estimating principal and interest.

PITIP&I + taxes + insurance

If the exam gives P&I, use it first, then add taxes, insurance, and HOA only when included as housing expense.

Front-endHousing / gross income

Housing only. Do not include car payments or credit cards here.

Back-end(Housing + debts) / gross income

This is where other recurring monthly debt belongs.

Ratio limitsUse the stem

Treat 28/36 as a practice default only. Actual lender and loan-product limits vary.

Required incomePayment / ratio

Work backward when the question asks how much income is needed.

The exam setup rule

  1. Name whether the question asks for front-end, back-end, max payment, or required income.
  2. If principal and interest is given, use that number before building PITI.
  3. Convert annual taxes and insurance into monthly amounts when needed.
  4. Build the monthly housing payment before calculating either ratio.
  5. Keep other monthly debt out of the front-end ratio.
  6. Use the qualifying limits in the stem, then check both ratios if both limits are given.

Five worked examples

Front-end ratio$2,500 housing payment, $8,500 gross monthly income

$2,500 / $8,500 = 0.2941 = 29.41%.

Back-end ratio$2,500 housing, $700 other debt, $8,500 income

($2,500 + $700) / $8,500 = 37.65%.

Max housing$8,500 income, 28% front-end ratio

$8,500 x 0.28 = $2,380 maximum housing payment.

Required income$2,520 housing payment at 28%

$2,520 / 0.28 = $9,000 required gross monthly income.

Debt trap$2,380 max housing by front-end, but $900 other debt

At 36% back-end with $8,500 income, total debt allowed is $3,060. Subtract $900 debt, so housing is capped at $2,160.

Traps to check

  1. Do not use principal and interest only when the question asks for housing payment.
  2. Do not recalculate principal and interest if the exam stem already gives it.
  3. Do not include other monthly debt in the front-end ratio.
  4. Do not leave annual taxes annual. Convert them to monthly before adding to PITI.
  5. Do not use net income when the ratio calls for gross monthly income.
  6. Do not multiply by 28 for a 28% ratio. Use 0.28.
  7. Do not treat practice ratio limits as lender approval standards.

Work it without the answer showing

Build housing expense first, total the other recurring debts, and use gross monthly income in both ratio denominators.

Problem 1 · both ratios$2,500 qualifying housing expense, $700 recurring monthly debt, and $8,500 gross monthly income. Find front-end and back-end ratios.
Housing
Other debt
Front-end
Back-end
Problem 2 · maximum housing$8,500 gross monthly income, $900 recurring monthly debt, 28% front-end limit, and 36% back-end limit. Find maximum housing under each limit and identify the controlling amount.
Housing
Other debt
Front-end
Back-end
Problem 3 · required income$2,520 qualifying housing expense, $900 recurring monthly debt, 28% front-end limit, and 36% back-end limit. Find required monthly and annual gross income.
Housing
Other debt
Front-end
Back-end

Answer key

  1. Front-end ratio is $2,500 / $8,500 = 29.4118%. Back-end ratio is ($2,500 + $700) / $8,500 = 37.6471%.
  2. Front-end allows $8,500 x 0.28 = $2,380 housing. Back-end allows $8,500 x 0.36 = $3,060 total obligations, then $3,060 - $900 = $2,160 housing. The back-end amount controls at $2,160.
  3. Front-end requires $2,520 / 0.28 = $9,000 monthly income. Back-end requires ($2,520 + $900) / 0.36 = $9,500. The higher amount controls, so required income is $9,500 monthly or $114,000 annually.

Sanity check

  1. Back-end ratio should be higher than front-end ratio when other monthly debt exists.
  2. Higher gross monthly income should lower both ratios for the same payment.
  3. Higher debts should raise the back-end ratio but should not change the front-end ratio.
  4. Maximum housing by ratios should be the lower qualifying number when both ratios are tested.
  5. A required-income answer should rise when payment rises.
Practice the pattern Pass Texas drills PITI, ratios, income, and debt traps.

Use the calculator, Math Coach, Trap Library, and Texas-specific questions at passtexasrealestate.com.

Download free

Sources: Pearson VUE outline #094401, CFPB debt-to-income guidance, and CFPB Ability-to-Repay rule. For exam prep only, not lending, approval, legal, tax, underwriting, or financial advice. Actual program rules and verified borrower data control. Reviewed August 30, 2026.

Use the Print / Save PDF button at the top to print or save this page as a PDF.