Debt-to-income is the underwriter's core affordability test: total monthly debt payments ÷ gross monthly income. The back-end ratio includes your full future housing payment (PITIA) plus every monthly obligation on your credit report — card minimums, car payments, student loans. The front-end ratio is the housing payment alone.
Reading your result
Under 43% is the classic qualified-mortgage benchmark and the safest zone everywhere. Conventional loans approve to 45–50% every day with compensating factors. Above 50%, restructure — the fastest fix is usually paying off (not down) a monthly tradeline, since killing a $450 car payment beats $20,000 of extra down payment on most files.
What counts and what doesn't, program caps, and the escalation options live in our DTI guide. Self-employed with skinny tax returns? Bank-statement loans qualify on deposits instead.
Frequently asked questions
What DTI do I need to buy a house?
Under 43% back-end is comfortable on nearly every program, and conventional routinely approves to 45–50% with compensating factors like reserves and strong credit.
Do credit card balances count, or just minimums?
Only minimum monthly payments count toward DTI. Balances affect credit utilization and score, which affect pricing — but the ratio itself uses minimums.
What income counts?
Gross (pre-tax) income the underwriter can document: base pay, plus bonus/overtime/commission with history, documented rental income, and self-employed income per tax returns or bank-statement analysis.
What if my DTI is too high?
Pay off a monthly tradeline, extend the loan term, put more down, document additional income — or use a product that qualifies differently, like DSCR for investment property.