What is a good debt-to-income ratio for a mortgage?

Most conventional lenders prefer a back-end DTI of 43% or lower. FHA loans may allow up to 50% with compensating factors. The ideal DTI is below 36%, which gives you more borrowing power and better loan terms.

What debts are included in DTI calculations?

DTI includes mortgage or rent, car payments, student loans, credit card minimums, personal loans, child support, and alimony. It does not include utilities, groceries, insurance premiums (except homeowner's insurance as part of housing costs), or subscriptions.

Can I get a mortgage with a 50% DTI?

It is difficult with conventional loans, which typically cap at 43%. However, FHA loans may allow up to 50% DTI with strong compensating factors like a high credit score, significant cash reserves, or a large down payment.

How can I lower my DTI quickly?

Pay off small debts to eliminate monthly payments, increase income with a side job or raise, and avoid new credit applications. Paying off a $300/month car payment, for example, could qualify you for an additional $50,000-$60,000 in mortgage borrowing power.

DTI Calculator: Check Your Debt-to-Income Ratio

Calculate your debt-to-income ratio to see if you qualify for a mortgage. Lenders use DTI to assess how much of your income goes toward debt. Most require 43% or lower for conventional loans.

DTI Calculator

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Gross Income

Income type Income amount Enter annual salary Hours per week Co-borrower gross monthly income Optional – adds to total gross monthly income

Proposed Housing Payment (PITI)

Principal & Interest (P&I) Monthly P&I payment Property tax (monthly) Homeowner's insurance (monthly) HOA fees (monthly) PMI / MI (monthly)

Monthly Debt Obligations

Car loan(s) Credit card minimum payments Student loans Personal loans Child support / alimony Other monthly debts

DTI Limits & Loan Parameters

Max front-end DTI (%)

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Housing ÷ gross monthly income Max back-end DTI (%)

%

(Housing + all debts) ÷ gross monthly income Loan type preset Interest rate (APR %) for max loan Loan term (years) for max loan

Back-end DTI (Total)

0.0%

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Front-end DTI

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Housing ÷ gross income

Max qualifying loan (P&I)

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Based on DTI limits at entered rate

DTI verdict

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Based on loan preset limits

DTI Breakdown—

Estimates only. Lenders apply different DTI rules. FHA may allow back-end up to 57% with compensating factors. VA has no official front-end limit.

What Is Debt-to-Income Ratio (DTI)?

Your debt-to-income ratio compares your total monthly debt payments to your gross monthly income. It is one of the most important factors lenders use to determine whether you can afford a mortgage. A lower DTI means less risk for lenders — and better loan terms for you.

Two Types of DTI

Front-End DTI (Housing Ratio)

Only includes housing costs: mortgage payment (principal + interest), property tax, homeowner's insurance, HOA fees, and PMI. Most lenders prefer this under 28%.

Back-End DTI (Total Ratio)

Includes all monthly debts plus housing costs: car payments, student loans, credit cards, personal loans, child support, and alimony. Most conventional loans require under 43%.

FHA DTI Limits

FHA loans may allow a back-end DTI up to 50% with strong compensating factors (high credit score, large reserves). See our FHA rates page.

VA DTI Guidelines

VA loans have no official DTI maximum but lenders typically prefer 41% or below. The VA uses a residual income test in addition to DTI. See VA rates.

How to Calculate Your DTI

Enter Your Monthly Figures

Gross Monthly Income: Your total income before taxes and deductions (include all household earners).
Housing Costs: Mortgage/rent, property tax, insurance, HOA, and PMI.
Car Payments: Monthly auto loan or lease payments.
Student Loans: Monthly student loan payments (use IBR payment if applicable).
Credit Card Minimums: Total minimum payments across all credit cards.
Other Debts: Personal loans, child support, alimony, or other recurring obligations.

The DTI Formula

DTI = (Total Monthly Debts / Gross Monthly Income) x 100

For example, if your monthly debts total $2,000 and your gross monthly income is $6,000, your DTI is 33.3% — well within the conventional loan limit of 43%.

How to Improve Your DTI

The fastest way to lower your DTI is to pay off debts — focus on the ones with the highest monthly payments first (not necessarily the highest balances). You can also increase income through raises, side work, or adding a co-borrower. Avoid taking on new debt before applying for a mortgage.

Use our affordability calculator to see how your DTI affects the home price you can afford, or check out our bad credit mortgage guide for tips on qualifying with a higher DTI.