Debt-to-Income Ratio for a Mortgage (DTI Explained)
By Colson · Reviewed by Abodemic Editorial Standards · Updated June 1, 2026
Your debt-to-income ratio is monthly debt divided by gross monthly income. Lenders prefer housing under 28% (front-end) and total debt under 43% (back-end). Lowering your DTI — by paying down debt or raising income — is often the fastest way to qualify for a bigger mortgage.
What is debt-to-income ratio?
Your DTI is your total monthly debt payments divided by your gross monthly income. Lenders use two versions: the front-end ratio (housing only) and the back-end ratio (all debt). See how yours shapes your budget in the affordability calculator.
What DTI do lenders want?
A common guideline is housing under 28% of gross income (front-end) and total debt under 36% — though many qualified mortgages allow up to 43% back-end. The lower of the two limits caps how much you can borrow.
How to lower your DTI
- Pay down or pay off a car loan, card balance, or student loan.
- Avoid taking on new debt before applying.
- Increase income (a raise or documented side income).
- Choose a longer term or larger down payment to reduce the housing payment.