Mortgage Basics

Debt-to-Income

 Your debt-to-income ratio (DTI) shows how much of your monthly income goes toward debt payments. Lenders use it to understand what payment you can comfortably afford.

Foreclosure Graphic

Your DTI includes:

  • Car loans
  • Student loans
  • Credit cards
  • Personal loans
  • Child support or alimony
  • Your future mortgage payment

General guidelines:

  • Conventional Loans: Up to ~45%
  • FHA Loans: Up to ~56% (varies by file)
  • VA Loans: Flexible depending on residual income
  • USDA: Usually around 41%

A higher credit score or strong compensating factors can allow higher DTIs.

A lower DTI usually means:

  • More loan program options
  • A smoother approval
  • A better overall payment

I’ll calculate your DTI for you and help you understand what price range works best