What are FHA debt-to-income limits?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
FHA generally allows a housing ratio up to about 31% and total debt up to 43%, but its automated underwriting routinely approves total DTI to 50% or higher when you have strong compensating factors like reserves or good credit.
That flexibility is a big reason FHA helps buyers who are tight on ratios. We'll run your file through FHA's automated system to see the maximum DTI you can use.
The guideline ratios
FHA generally wants your housing payment under about 31% of gross monthly income and your total debts under about 43%. With strong compensating factors, FHA can stretch total debt to 50% or higher.
Debt-to-income, or DTI, compares your monthly debts to your monthly income. A lower DTI means more room to qualify.
Compensating factors
FHA is flexible when you have strengths like solid reserves, a high credit score, or a long stable job. Those factors let underwriters approve a higher DTI.
If your ratios feel tight, paying down a card can help fast. Apply now and we will calculate your DTI and show you how to fit under the FHA limits.