Calculate your DTI ratio and see which mortgage programs you qualify for.
Income
Enter monthly gross income before taxes
Front-End Debts (Housing)
Back-End Debts (Monthly)
Your DTI Ratios
Front-End DTI
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Housing / Income
Back-End DTI
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All debts / Income
Front-End DTI
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Back-End DTI
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Max Mortgage (28%)
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Max Total Debt (36%)
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Remaining Capacity
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Total Debt/mo
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Front DTI=Housing / Gross Income × 100 Back DTI=All Debts / Gross Income × 100
Mortgage Loan Qualification
Based on your DTI ratios, here's which loan programs you likely qualify for. Lenders also consider credit score, down payment, and other factors.
Loan Type
Front DTI Limit
Back DTI Limit
Your Status
Notes
Note: These are guideline limits. Many lenders use "automated underwriting systems" that may approve higher DTIs with compensating factors (high credit score, large down payment, reserves). Always consult a mortgage professional.
Debt Reduction What-If
See how reducing your monthly debt payments lowers your DTI.
Reduce monthly debt by:$0/mo
Drag right to simulate paying down your non-housing debts
New Back DTI
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DTI Improvement
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New Debt Capacity
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DTI Target Analysis
How much mortgage you can afford at various DTI targets given your non-housing debts.
DTI Target
Max Total Debt
Non-Housing Debts
Max Housing Payment
Status
How to Use This Calculator
1
Enter Your Income
Input your monthly gross income before taxes and deductions. Lenders always use gross (pre-tax) income when calculating DTI.
2
Add Housing Costs
Enter your monthly rent or mortgage payment (PITI: principal, interest, property taxes, and homeowner's insurance).
3
Add All Other Debts
Include car loans, student loans, credit card minimums, and any other recurring monthly debt. See which loan programs you qualify for.
Includes every recurring debt obligation: housing, car loans, student loans, credit card minimums, child support, and alimony. This is the ratio lenders focus on most.
Ratio of housing costs only (mortgage/rent, taxes, insurance) to gross income. Lenders generally want this below 28%.
Back-End DTI
Ratio of ALL monthly debt obligations to gross income — the lender's primary qualification metric. Typically must be below 36–43%.
Gross Income
Total income before taxes and deductions. This is what lenders use — not your take-home pay.
PITI
Principal, Interest, Taxes, Insurance — the four components of a full mortgage payment used in front-end DTI calculations.
28/36 Rule
Traditional lender guideline: keep front-end DTI below 28% and back-end DTI below 36% of gross monthly income.
Non-QM Loan
Non-Qualified Mortgage allowing higher DTI (up to 50–55%) for borrowers with strong compensating factors like large down payments or high credit scores.
Compensating Factors
Financial strengths that may offset a high DTI: credit score above 740, 20%+ down payment, 6–12 months PITI in reserves, stable employment history.
Debt Capacity
The remaining monthly debt payment you can take on without exceeding your lender's DTI limit — shown in the results as "Remaining Capacity."
Result: Front DTI = 29.1%, Back DTI = 54.5%. Exceeds most lender limits. Must pay off ~$500/mo in debt or increase income to qualify conventionally.
DTI Limits by Loan Type
Loan Type
Max Front-End DTI
Max Back-End DTI
Key Requirement
Conventional (Fannie/Freddie)
28%
36–45%
660+ credit score typically required
FHA Loan
31%
43% (up to 50%)
580+ credit; 3.5% down payment
VA Loan (Veterans)
No limit
41% guideline
Military service; no down payment required
USDA Loan
29%
41%
Rural areas only; income limits apply
Jumbo Loan
28%
36–43%
Typically stricter; 700+ credit, large reserves
Non-QM / Portfolio
Flexible
Up to 55%
Higher rates; strong compensating factors needed
Understanding DTI: The Number That Controls Your Mortgage
Why DTI Is the Most Important Mortgage Metric
Debt-to-income ratio (DTI) is the single most important metric lenders use when evaluating mortgage applications. It measures what percentage of your gross monthly income is consumed by debt payments. Unlike your credit score — which reflects how reliably you pay — DTI reflects whether you can actually afford to take on a new loan given your existing obligations.
Front-End vs. Back-End: The Two Numbers Lenders Watch
There are two DTI ratios lenders calculate. The front-end DTI (also called the "housing ratio") includes only your proposed mortgage payment — principal, interest, property taxes, and homeowner's insurance (PITI). The back-end DTI adds every other monthly debt: car loans, student loans, credit card minimums, personal loans, alimony, and child support. Lenders focus most heavily on the back-end DTI.
Loan Type Thresholds and Flexibility
The traditional guideline is the 28/36 rule: front-end DTI should not exceed 28% and back-end DTI should not exceed 36%. Conventional loans from Fannie Mae and Freddie Mac typically allow up to 43–45% back-end DTI with strong compensating factors. FHA loans allow up to 43% (sometimes 50% with excellent credit). VA loans use a 41% guideline but are more flexible. Jumbo loans are generally stricter.
How Compensating Factors Can Overcome High DTI
High DTI does not automatically disqualify you — it raises the bar for other factors. Lenders may approve high-DTI applications with: credit scores above 740, down payments of 20% or more, 6–12 months of cash reserves (PITI), stable employment history of 2+ years, and minimal new debt applications. These compensating factors demonstrate overall financial strength.
Strategies to Lower Your DTI Before Applying
To lower your DTI before applying for a mortgage, focus on eliminating smaller debts entirely (removing their monthly minimums entirely is more effective than paying them down partially). Adding income — documentable side income, freelance work, or a co-borrower — also helps. Avoid taking on any new debt — even car loans — in the 6–12 months before applying.
Frequently Asked Questions
What is a good DTI ratio for a mortgage?
Most conventional lenders prefer a back-end DTI of 36% or below, though many allow up to 43–45% with compensating factors. FHA loans allow up to 43% (sometimes 50% with strong credit). A front-end DTI below 28% is generally considered healthy for housing costs.
What debts are included in back-end DTI?
Back-end DTI includes all monthly debt obligations: mortgage/rent, car loans, student loans, credit card minimum payments, personal loans, child support, and alimony. It does not include utilities, groceries, insurance premiums, or other living expenses.
Does gross or net income count for DTI?
Lenders always use gross income (before taxes and deductions). This means your actual take-home pay is lower, and the debt burden feels heavier in practice. Self-employed individuals typically use a 2-year average from tax returns.
Can I get a mortgage with a high DTI?
Yes, but it becomes harder. FHA allows up to 43% (sometimes 50%), VA loans are flexible (41% guideline but often higher), and some lenders offer non-QM loans with DTI up to 50–55%. Higher DTIs typically require excellent credit scores, larger down payments, or substantial cash reserves.
How can I lower my DTI quickly?
The fastest ways: (1) pay off smaller debts entirely to eliminate their monthly payment, (2) increase income — even documentable side income counts, (3) avoid taking on any new debt before applying. Increasing income has the largest effect per dollar since it improves the denominator of the ratio.
Does student loan deferment help DTI?
Not always. Lenders often count 0.5–1% of the student loan balance as a monthly payment even in deferment, per agency guidelines. FHA uses 0.5% of the balance if in deferment. Fannie Mae uses 1%. Always check with your specific lender.
What is the 28/36 rule?
A traditional lender guideline: keep front-end DTI (housing costs) below 28% and back-end DTI (all debts) below 36% of gross monthly income. Modern lending often allows higher ratios with strong credit scores, large down payments, or cash reserves — but the 28/36 rule remains a useful benchmark.
Does DTI affect my credit score?
No — DTI is not part of credit score calculations (FICO or VantageScore). However, the underlying debts that drive a high DTI do affect your credit utilization ratio, which is a significant component of your credit score.
Related Calculators
Income vs. Debt Breakdown
Monthly income split: housing costs, other debts, and remaining free income