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DTI limits by loan type
| Loan | Typical maximum back-end DTI |
|---|---|
| Conventional (Fannie Mae / Freddie Mac) | Up to 45–50% with strong credit and reserves (36% is the classic guideline) |
| FHA | Commonly up to 43%; up to about 57% with compensating factors through automated underwriting |
| VA | 41% guideline, with residual income also checked |
| USDA | 29% housing / 41% total |
| Qualified Mortgage (general) | No fixed cap since 2021; priced-based test, but 43% remains a common lender overlay |
Guidelines, not guarantees: lenders weigh credit score, down payment and cash reserves alongside DTI.
How DTI is calculated
Back-end DTI = (housing payment + all other monthly debt payments) ÷ gross monthly income × 100. Front-end DTI uses the housing payment alone. Example: $1,800 housing + $400 car payment on $6,000 a month = 36.7%.
Assumptions
- Uses gross monthly income and minimum required payments, the way lenders calculate DTI.
- Don't include utilities, phone, insurance (other than in the mortgage payment), groceries or other living costs.
- Limits shown are common guidelines; each lender and loan program sets its own.
Frequently asked questions
What is a good debt-to-income ratio?+
Under 36% is generally considered good, and under 20% excellent. Between 36% and 43% most loans are still available; above 43% options narrow and above 50% most lenders will decline.
What counts as debt in DTI?+
Minimum required monthly payments: the housing payment (rent or proposed PITI + HOA), car loans, student loans, credit card minimums, personal loans, and child support or alimony. Utilities, phone bills, groceries and insurance not in the mortgage don't count.
Is DTI based on gross or net income?+
Gross — your income before taxes and deductions. That's why a DTI that looks fine on paper can still feel tight on take-home pay.
What's the difference between front-end and back-end DTI?+
Front-end is only the housing payment divided by income. Back-end adds every other monthly debt. Lenders focus mostly on back-end.
How can I lower my DTI quickly?+
Pay off a small loan entirely (removing its payment), pay down a credit card to cut its minimum, add a co-borrower's income, or choose a less expensive home.
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Last reviewed October 15, 2026. Calculator version 1.0.0. Results are estimates for educational purposes, not financial, tax or lending advice. How we check our numbers.