Debt-to-Income Ratio Calculator
Calculate your DTI ratio and see if you qualify for conventional, FHA, or VA loans
H = housing expense used for front-end DTI
How DTI Affects Loan Approval
Lenders use DTI alongside credit score, assets, and employment history. A low DTI signals that you have room in your budget for a new payment and are a lower default risk.
Guide
How it works
Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward monthly debt payments. Lenders use this metric as a primary factor in loan approval decisions.
Front-end DTI (also called housing ratio) = Housing costs / Gross income. Most lenders want this below 28%.
Back-end DTI = All monthly debts / Gross income. This includes housing, car payments, student loans, credit cards, and any other recurring obligations.
What DTI do I need to qualify for a mortgage?expand_more
Conventional loans typically require a back-end DTI under 43%, though some lenders approve up to 50% with compensating factors. FHA loans allow up to 50% with strong credit. VA loans have a 41% guideline but are more flexible. A DTI under 36% gives you the best rates and terms.
Does my DTI include all debts?expand_more
DTI includes all recurring monthly debt obligations: mortgage/rent, car payments, student loans, credit card minimums, personal loans, and child support. It does NOT include utilities, phone bills, insurance, or grocery expenses.
How can I quickly lower my DTI?expand_more
The two levers are income (increase gross income through raises, side income, or a second job) and debt (pay off small balances, refinance to lower payments, or avoid taking on new debt). Paying off a credit card entirely removes its minimum payment from the DTI calculation.
Is front-end or back-end DTI more important?expand_more
Back-end DTI is the more important figure for lenders, as it captures your total financial obligations. Front-end DTI matters mostly for FHA loans, which have separate front-end (31%) and back-end (43%) limits. Conventional lenders focus primarily on back-end DTI.
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