HomeGlossaryDebt-to-Income Ratio (DTI)
Mortgage Glossary

Debt-to-Income Ratio (DTI)

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

Debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments, including the proposed mortgage.

What Debt-to-Income Ratio (DTI) means

Lenders look at front-end DTI (housing only) and back-end DTI (all debts). FHA can allow back-end DTI up to about 57%, while conventional loans usually cap around 45–50%.

Florida example

A Florida borrower earning $7,000 a month with $700 in car and card payments plus a $1,800 housing payment has a 36% back-end DTI, comfortably within guidelines. Lowering DTI improves both approval odds and rate.

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