Credit & qualifying
Debt-to-income ratio (DTI)
Also called: DTI
In short
DTI compares your monthly debt payments to your gross monthly income. Lenders use it to judge how much new mortgage payment your budget can reasonably support.
Debt-to-income ratio is your total monthly debt payments divided by your gross monthly income, expressed as a ratio. Lenders look at it to gauge whether adding a mortgage payment leaves your budget sustainable.
It usually comes in two flavors: a front-end ratio counting just housing, and a back-end ratio counting housing plus other debts like car loans and credit cards. Program guidelines set the limits, and they differ by loan type.
Two levers move DTI: reducing monthly debt or increasing qualifying income. It's one of the most direct things a buyer can influence before applying.
Related
Current as of August 2026.