Debt-to-Income Ratio for a Mortgage 2026
What's the max DTI to qualify? How to calculate yours. How to lower it fast.
Emily Chen
NMLS #345678 · Certified Mortgage Planning Specialist
10 years helping borrowers optimize their debt-to-income ratio to qualify for the best mortgage. Expert in FHA, VA, and conventional underwriting guidelines.
Quick Answer: DTI Formula
Example: $2,500 mortgage + $400 car + $200 student loans = $3,100 ÷ $7,000 income = 44.3% DTI. Most lenders approve up to 43-50% depending on loan type and credit score. → See if you qualify with your current DTI.
What Counts in Your DTI (and What Doesn't)
✓ Included in DTI
- ✓Proposed mortgage payment (P&I + taxes + insurance + HOA)
- ✓Car loan payments
- ✓Student loan payments (even if deferred)
- ✓Credit card minimum payments
- ✓Personal loan payments
- ✓Child support / alimony payments
- ✓Co-signed loan payments (if you're liable)
✗ NOT Included in DTI
- ✗Utilities (electric, gas, water)
- ✗Groceries and food
- ✗Health/auto/life insurance premiums
- ✗401k or retirement contributions
- ✗Cell phone bills
- ✗Streaming subscriptions
- ✗Medical bills (unless in collections)
Maximum DTI by Loan Type (2026)
| Loan Type | Front-End Max | Back-End Max | With Compensating Factors |
|---|---|---|---|
| Conventional (Fannie Mae) Strong credit (720+) and reserves may push to 50% | 28% | 45% | 50% |
| Conventional (Freddie Mac) Similar to Fannie Mae guidelines | 28% | 45% | 50% |
| FHA Loan AUS approval needed for >43%. Compensating factors required. | 31% | 43% | 57% |
| VA Loan Residual income requirement also applies | N/A | 41% | 60%+ |
| USDA Loan Stricter than FHA/VA. Rural areas only. | 29% | 41% | 46% |
| Jumbo Loan Lender-specific. Most cap at 43%. | 28% | 43% | 45% |
Front-end = housing costs only. Back-end = all monthly debts. Compensating factors include high credit score, large down payment, significant cash reserves.
Max Mortgage Payment by Income & DTI
How much house you can afford based on gross monthly income and DTI threshold.
| Gross Monthly Income | 28% (Housing) | 36% (Total) | 43% (Total) | 50% (Total) |
|---|---|---|---|---|
$5,000/mo Single income, $80K salary | $1,400 | $1,800 | $2,150 | $2,500 |
$7,500/mo Dual income, $120K household | $2,100 | $2,700 | $3,225 | $3,750 |
$10,000/mo High earner, $160K salary | $2,800 | $3,600 | $4,300 | $5,000 |
$12,500/mo Dual income, $200K household | $3,500 | $4,500 | $5,375 | $6,250 |
Total debt columns include all debts (mortgage + car + student loans etc.). Subtract existing debts to find your max mortgage payment.
Know your DTI before applying — see which lenders approve your ratio.
Compare lenders side by side. No SSN required. Free rate quotes in 3 minutes.
6 Ways to Lower Your DTI Before Applying
Pay off small debts completely
HighEliminating a $250/month car payment drops your DTI by 3.5% on a $7,000/month income. Target debts with fewer than 10 payments remaining first — lenders often exclude these entirely.
Pay down credit card balances
HighCredit card minimum payments are calculated as 1-3% of the balance. Paying a $5,000 card to $0 removes ~$100-150/month from your DTI calculation.
Add a co-borrower with income
Very HighAdding a spouse, partner, or family member with income but little debt can dramatically lower your combined DTI ratio.
Increase your income
HighA raise, second job, freelance income, or rental income all count toward your gross income. Lenders typically require 2 years of self-employment income history.
Avoid new debt before closing
CriticalDon't finance a car, open new credit cards, or take personal loans during the mortgage process. New debt can kill your approval even after pre-approval.
Choose a longer loan term
MediumA 30-year mortgage has a lower monthly payment than a 15-year, reducing your front-end DTI. You can always pay extra principal later.
Calculate Your DTI & Get Pre-Approved
See exactly what mortgage you qualify for based on your income and debts. Compare lenders in minutes.
Frequently Asked Questions
What is the maximum debt-to-income ratio for a mortgage in 2026?
Maximum DTI ratios in 2026: Conventional loans (Fannie Mae/Freddie Mac) allow up to 45-50% with strong compensating factors. FHA loans allow up to 57% with compensating factors. VA loans can go up to 60% in some cases. USDA loans max at 41-46%. Most lenders prefer 43% or below for the best approval odds.
How do I calculate my debt-to-income ratio for a mortgage?
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income × 100. Example: $2,500 mortgage + $400 car + $200 student loans = $3,100 total debt. $3,100 ÷ $7,000 gross income = 44.3% DTI. Include: proposed mortgage (P&I + taxes + insurance + HOA), car loans, student loans, credit card minimums, personal loans. Exclude: utilities, groceries, insurance premiums, 401k contributions.
What is a good DTI ratio for a mortgage?
Lenders consider DTI below 36% excellent, 36-43% good, 43-50% acceptable (with strong credit/assets), and above 50% difficult to approve. The "28/36 rule" suggests your housing costs should be under 28% of gross income and total debt under 36%.
How can I lower my DTI to qualify for a mortgage?
To lower your DTI: (1) Pay off or pay down high-balance debts, especially credit cards and car loans. (2) Increase your income — a raise, second job, or rental income counts. (3) Pay off installment loans with fewer than 10 payments remaining (lenders often exclude these). (4) Avoid taking on new debt before applying. (5) Add a co-borrower with income but no debt.
Does student loan debt count in DTI for a mortgage?
Yes. Student loans count in your DTI. For conventional loans, lenders use the actual payment or 1% of the balance if in deferment. FHA uses 1% of the balance or the actual payment (whichever is higher). VA uses the actual payment. Income-driven repayment (IDR) plans: the actual IDR payment is used if it is greater than $0.