Debt-to-Income Ratio (DTI)
Your debt-to-income ratio compares monthly debt to gross income. It is often shortened to DTI. Lenders use it to judge how much you can afford.
What Debt-to-Income Ratio (DTI) means
A lower DTI means more room for a mortgage payment. Many programs cap DTI around 43% to 50%. Paying down debt lowers it.
Florida example
A Florida buyer earns $6,000 a month. Their debts total $2,400. That puts their DTI at 40%, which fits most loans.
Comparing debt to income
Your debt-to-income ratio, or DTI, compares your monthly debt payments to your gross monthly income. Lenders use it to see how much room you have for a mortgage.
Most loans want your total debts under about 43%, though some stretch to 50% with strong credit.
Lowering your DTI
Paying off a card or a small loan can drop your DTI fast and boost how much home you can afford. Avoid taking on new debt before you buy.
We calculate your DTI and show you how to improve it. Reach out and we will map the fastest path to qualify.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.