DTI Calculator
Calculate your debt-to-income ratio and find what mortgage payment lenders will approve. Conventional max DTI: 43%.
DTI thresholds by loan type
| Loan type | Max DTI | Notes |
|---|---|---|
| Conventional (Fannie/Freddie) | 43% | Up to 50% with strong credit |
| FHA | 43-57% | More flexible with reserves |
| VA | 41-60% | Residual income test instead of strict DTI |
| USDA | 41% | Strict, no exceptions usually |
| Jumbo | 38-43% | Stricter, requires reserves |
FAQs
What is DTI?
Debt-to-Income ratio compares your monthly debt payments to your gross monthly income. Formula: DTI = Total monthly debts / Gross monthly income × 100. Lenders use DTI to evaluate mortgage applications. Lower DTI = stronger borrower.
What's a good DTI for a mortgage?
Conventional loans: max 43% back-end DTI (some lenders allow 50%). FHA: max 43%, occasionally 50% with strong credit. VA: max 41%, more flexible. Ideal DTI: under 36% gives best rates. Under 28% front-end (housing only) is the gold standard.
What's front-end vs back-end DTI?
Front-end (housing ratio): just your housing expense (PITI) ÷ gross monthly income. Lenders prefer under 28%. Back-end (total DTI): ALL debt payments (housing + cars + student loans + minimums) ÷ income. Max 43% for most loans. Back-end is the binding constraint for most borrowers.
Does rent count in DTI?
Current rent doesn't count for mortgage DTI because you'll stop paying it when you move into the new home. Only the NEW housing expense (PITI) counts. Other debts (cars, student loans, credit cards) DO count regardless of current housing.
How do I lower my DTI?
Three options. (1) Pay off debts — even one car loan can drop DTI 5-10%. (2) Increase income — get a raise, side hustle. (3) Wait for student loan changes. Refinancing existing debts to lower rates also helps. Avoid taking on new debt 6-12 months before applying for a mortgage.