## How do you calculate debt to income ratio for a mortgage?

How to calculate your debt-to-income ratio To calculate your DTI for a mortgage, add up your minimum monthly debt payments then divide the total by your gross monthly income. For example: If you have a $250 monthly car payment and a minimum credit card payment of $50, your monthly debt payments would equal $300.

## What is the minimum debt-to-Income (DTI) ratio for a mortgage?

Here are debt-to-income requirements by loan type: FHA loans: You’ll usually need a back-end DTI ratio of 43% or less. If your home is highly energy-efficient and you have a high credit score, you may be able to have a DTI as high as 50%. 4

## What is the debt to income ratio cap for an FHA loan?

FHA Loans have the most generous debt to income ratio caps than any other mortgage loan program. Manual underwriting also caps debt to income ratios to 50% DTI with compensating factors.

## What debt-to-income ratio do Lenders look for in a mortgage application?

The debt-to-income ratio your lender wants to see partly depends on the type of mortgage loan you’re applying for. FHA and conventional loans allow for the highest DTI ratios, while USDA loans (for use in designated rural areas) and VA loans (those for veterans and military members) have the strictest DTI requirements.