Debt to Income and Your Home Loan Ability

Your debt-to-income (DTI) ratio is a key component of whether or not you qualify for a mortgage loan. This ratio measures your monthly debt payments divided by your monthly income. This number shows how much of your income is tied up in paying debts and can also be used to predict how well you can manage those payments in the future.

A reasonable DTI ratio, including rent or a mortgage payment, is 36% or less. This number is the total of your fixed monthly expenses (rent/mortgage, credit card bills, auto loans, student loans, child support, etc. (not including utilities)), divided by the total of your monthly income.

Gross Monthly Income
Spouses salary  
Child/Spousal support  
Other income  


Monthly Debt Payments
Rent or mortgage                     
Auto payment  
Credit cards  
Child/Spousal support  
Student loans  


Total debt             Total Income        

Debt-to-Income Ratio (total debt/total income)