What is the debt-to-income ratio for a mortgage?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income. Most loans want your DTI at or below 43%, though FHA and automated approvals stretch to 50% or higher with strong compensating factors.
Lenders look at two numbers: the housing payment alone and total debt. Paying down a card or auto loan before applying can meaningfully raise your price range. We'll calculate your exact DTI and what room you have.
What your DTI really measures
Debt-to-income compares your monthly debts to your monthly income. Lenders add up your future house payment plus car loans, cards, and student loans. Then they divide by your gross monthly pay.
Most loans want that total under 43%. Some go higher with strong credit or savings. FHA can stretch further than conventional in many cases.
Lowering your ratio in Florida
Want a lower DTI? Pay down a card or two. Avoid new debt before you apply. Even closing on a car loan early can help.
We calculate your ratio up front and tell you where you stand. If you are close, we show you the smallest change that gets you approved.