Home Buyer FAQ: What Is Debt to Income (DTI)?

Home Buyer FAQ: What Is Debt to Income (DTI)?

DTI stands for debt-to-income, also referred to as the back-end debt ratio.


It shows how much of your gross monthly income is needed to cover all your debt obligations.


Follow these steps to determine your approximate DTI:


  1. Add up all your debt (including your mortgage, car loans, child support and alimony, credit card bills, student loans, etc.).
  2. Divide this amount by your monthly gross income.
  3. Then multiply this amount by 100. This percentage is your DTI.


Please keep in mind that you must also meet specific underwriting standards. The mortgage lender can help you better understand FICO credit score and maximum back-end debt ratio requirements, as well as any other standards that may apply.



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