Your debt-to-income ratio (back-end)
40.7%
$2,850 in monthly debt payments ÷ $7,000 gross monthly income
Front-end (housing) DTI
28.6%
Rating
Acceptable
Gross monthly income
$7,000
Between 36% and 43% is within FHA’s standard 43% total-debt limit for manual underwriting and below the 50% maximum for conventional loans approved through automated underwriting. VA and USDA use 41% as their guideline.
Where your gross monthly income goes
- Housing
- $2,000 (28.6%)
- Car loans & leases
- $450 (6.4%)
- Student loans
- $250 (3.6%)
- Credit cards
- $150 (2.1%)
- Total monthly debt payments
- $2,850 (40.7%)
- Left after debt payments
- $4,150
How you compare with loan program limits
| Program | Limit (front / back) | Your status |
|---|---|---|
| 28/36 rule of thumb | 28% / 36% | Over both limits |
| Conventional (Fannie Mae), manual | — / 36% | Over total-debt limit |
| Conventional, manual + credit & reserves | — / 45% | Within limit |
| Conventional, Desktop Underwriter | — / 50% | Within limit |
| FHA, manual underwriting | 31% / 43% | Within limit |
| FHA, manual + 1 compensating factor | 37% / 47% | Within limit |
| FHA, manual + 2 compensating factors | 40% / 50% | Within limit |
| VA | — / 41% | Within limit |
| USDA | 29% / 41% | Within limit |
Limits are typical maximums. Lenders can set stricter limits (overlays), and credit score, down payment and cash reserves also matter.
What it takes to reach a lower DTI
| Target DTI | Max monthly debts | Cut payments by | Or earn (per year) |
|---|---|---|---|
| 36% | $2,520 | $330/mo | $95,000 (+$11,000) |
| 43% | $3,010 | Already there | Already there |
| 50% | $3,500 | Already there | Already there |
To reach 36%, you would need to eliminate $330 of monthly payments (for example, by paying off a card or loan), or earn $11,000 more a year in gross income.
Housing payment your income supports
- Housing payment that fits the 28/36 rule
- $1,670/mo
- Housing payment that keeps total DTI at 43%
- $2,160/mo