Debt-to-Income Ratio Explained
DTI is underwriting math: counted monthly debts divided by gross monthly income. Credit score is the file. DTI is whether the payment fits the paycheck. Lenders look at both.
Front-end vs back-end
Front-end ≈ housing (PITI, sometimes HOA, rent in some products). Back-end ≈ housing plus auto, student loans, card minimums, child support. Conventional programs often talk about ~36% back-end with room for compensating factors. FHA can go higher. There is no single legal cap — overlays win.
What usually counts
Minimum card payments count even if you pay in full. That is why paying cards down can help DTI and utilization together. Groceries and utilities usually do not. Student loan calculation depends on the program (actual payment vs 0.5% of balance, etc.).
Lower it before you apply
Do not open a car loan six weeks before a mortgage. Pay revolving balances. Document overtime only if the lender’s rules will count it. Run the DTI calculator before you authorize hard pulls.