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Debt-to-income ratio

Debt-to-income is your monthly debt payments divided by gross monthly income. The housing payment is part of the debts. There is no single cutoff we advertise.

Front-end DTI is housing alone. Back-end DTI adds car loans, student loans, minimum credit card payments, and other obligations. Child support counts. Groceries do not.

Illustrative price

$573,723

This solves for a conventional payment that fits the DTI you entered, using 2.1% tax and about $300 of insurance per $100,000 of price. Many programs look at the mid-40s, but the limit depends on the whole file. This is an estimate for illustration only, not a quote, rate lock, or loan approval. Rates and terms depend on your full application.

Questions

Straight answers

What DTI is allowed?

Automated findings often tolerate the low-to-mid 40s, sometimes higher with strong factors. VA also uses residual income. We will not promise a ratio.

Does rent count?

The new housing payment replaces rent in the calculation. Rent itself is not a debt if it ends.

Do student loans count?

Yes, even in deferment, using the payment or a percentage of the balance under the guideline.

Can I pay off a car to qualify?

Sometimes, if the funds are documented and the underwriter accepts it.

Is DTI the same as credit score?

No. You can have a high score and a high ratio, or the reverse.

Whose income counts?

Borrowers on the application. A non-borrowing spouse’s debts can matter on community-property files, including Texas.

Reviewed by Patrick Crawford, NMLS #231625 · Last updated October 28, 2026

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USA MortgageGroupTX · FL · CO · CA

Pinnacle Funding NMLS #260879. Patrick Crawford, Loan Officer, NMLS #231625. Licensed in Texas, Florida, Colorado, and California. 6625 Mediterranean Drive #200, McKinney, TX 75072.

(866) 216-9007 · info@usamortgagegroup.com

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