Finance
Debt-to-Income Ratio (DTI)
Updated 2025-11-11
Definition
The percentage of your gross monthly income that goes to minimum debt payments. Mortgage underwriters use DTI as the primary affordability gate: most conventional lenders cap the back-end DTI (all debts including the new mortgage) at 43%, the threshold defined by the CFPB's Qualified Mortgage rule. FHA loans allow up to 50% with compensating factors. A household earning $7,500/month with $2,000 in combined mortgage, car, and credit card payments has a DTI of 27%, well within approval range.
Primary source: CFPB DTI guide
Related Calculators
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