A good DTI ratio to get approved for a mortgage is under 36%, but it's possible to qualify with a higher ratio.
A good DTI ratio to get approved for a mortgage is under 36%, but it's possible to qualify with a higher ratio.
What is a good debt-to-income ratio for a mortgage? The lower your DTI, the better—this means less of your income is tied to recurring debt payments, and you’ll likely be more able to continue making payments on time even if you experience a minor financial setback. Borrowers with hig...
Your debt-to-income (DTI) ratio is a key factor in getting approved for a mortgage. Most lenders see DTI ratios of 36% as ideal. Approval with a ratio above 50% is tough. The lower the DTI the better, not just for loan approval but for a better interest rate. ...
Mortgage lenders will typically look at your debt-to-income ratio to understand your financial position and ensure you can handle more debt.
Your debt-to-income (DTI) ratio compares your monthly debt expenses to your earnings. Learn what debt-to-income ratio you need for a mortgage.
One number that matters when buying a home? Your debt-to-income ratio. Here's what lenders look for when it comes to debt-to-income ratios for a mortgage.
–Max DTI Ratio for FHA Loans –Max DTI Ratio for VA Loans –Max DTI Ratio for USDA Loans –How to Calculate Your DTI Ratio –What’s Included in the Debt-to-Income Ratio –What’s Not Included in Your DTI –What Is a Good Debt-to-Income Ratio?
If I had to set a rule, it would be this: Aim to keep your mortgage payment at or below 28% of your pretax monthly income. Keep your total debt payments at or below 40% of your pretax monthly income. Note that 40% should be a maximum. I recommend striving to keep total debt to...
Debt-to-income ratio requirements for a mortgage Tocalculate your DTI ratio, divide your monthly debt payments by your gross monthly income. While there’s no minimum income requirement for a mortgage, your income does influence your DTI ratio. Lenders’ requirements for that ratio vary by loan...