DTI limits by loan type
| Loan | Typical front-end | Typical back-end | Maximum with approval |
|---|---|---|---|
| Conventional | 28% | 36% | 45% (50% with DU approval) |
| FHA | 31% | 43% | 46.9% front / 56.9% back |
| VA | No limit | 41% | Higher is possible with strong residual income |
| USDA | 29% | 41% | Higher is possible with automated (GUS) approval |
Front-end vs. back-end ratio
The front-end ratio, also called the housing ratio, divides your proposed monthly housing payment by your gross monthly income. The back-end ratio divides your housing payment plus every other recurring debt by that same income. A buyer earning $8,500 a month with a $2,300 housing payment and $720 in other debts has a front-end ratio of 27% and a back-end ratio of about 35.5%.
Lenders look hardest at the back-end number because it shows how much of your paycheck is already spoken for. A higher DTI is not an automatic denial: credit score, down payment, cash reserves and job history can all offset it. These limits are general guidelines, and individual lenders can set tighter rules.
What counts as debt
Include car loans, student loans, minimum credit card payments, personal loans, child support and alimony. Leave out rent you will stop paying, utilities, groceries, phone bills and insurance premiums that are not part of the mortgage.