Help With DTI Calulations

[Colton S.]

Hey guys,

My wife and I are considering moving and purchasing a new house. I know how to calculate DTI, but I'm still generally new at it so I wanted your feedback.

Below is the current numbers we have:

Income: $48,500

Expenses:

Mortgage: $674.58 (Includes PMI, Taxes and Hazard Ins)

Car Payment: $271.72

Student Loans: $170

Est new home expenses:

Insurance: $90

PMI: $60

Taxes: $60

Total monthly expenses: $1325

Total Monthly Income: $4,041.66

I have my estimated DTI at 32,82% currently, meaning we could purchase a house for 60k or less. Does that sound correct?

Also, we will be renting out our current home (The $675/mo payment) for roughly $900 a month, once we move. Can I include this in my income to decrease my overall DTI? My wife will be getting a full time job come January, however, I was hoping to purchase this house off my income and we use her's for another home.

One note, our old home was purchased with FHA and our new one will be purchased with FHA, unless we can find another low down payment option!

Thanks!