Debt-to-Income Ratio Calculator

What DTI ratio is needed for a mortgage?

Conventional loans (Fannie Mae/Freddie Mac): ideally back-end DTI ≤36%, maximum 43–45%. FHA loans: max 43% (up to 50% with compensating factors). VA loans: no hard DTI limit, but lenders typically prefer below 41%. USDA loans: typically ≤41%. Higher credit scores, large down payments, and cash reserves can help qualify at higher DTIs.

Does DTI include all debts or only the minimum payments?

Lenders use the required minimum monthly payment for each debt, not the balance. For credit cards, it's the minimum payment shown on your statement. For installment loans (car, student), it's the monthly payment. Income-driven student loan payments are calculated at 0.5–1% of the loan balance monthly if not yet in repayment.

How can I lower my DTI to qualify for a mortgage?

Three approaches: (1) Increase income — add a co-borrower, raise your income, document all sources. (2) Pay down debt — focus on eliminating accounts to remove that minimum payment entirely (paying down a balance doesn't help DTI if the account stays open). (3) Make a larger down payment — reduces the monthly PITI.

Is DTI or credit score more important for mortgage approval?

Both matter, but differently. Credit score affects the interest rate you qualify for — a higher score means a lower rate. DTI determines whether you can afford the payment at that rate. You can be denied for either reason alone. The ideal profile is a 740+ credit score, 20% down payment, and back-end DTI below 36%.