Mortgage Debt-to-Income Ratio Guide for Qualification (2026)
Calculate mortgage debt-to-income ratio: DTI calculation, qualification limits, income documentation, and DTI improvement for mortgage approval.
Summary
DTI ratio determines mortgage qualification. This guide explains calculation, limits, documentation, and improvement strategies.
Key Steps
- 1Calculate DTI: total monthly debt ÷ gross monthly income.
- 2Apply qualification limits: conventional 43% max, FHA allows up to 50%.
- 3Document income: W-2, tax returns, pay stubs for income verification.
- 4Reduce DTI: pay down debt, increase income, avoid new debt before application.
- 5Understand front-end vs back-end: front-end housing ratio, back-end total debt.