What is the difference between front-end and back-end DTI?

Front-end is the proposed housing payment alone (principal, interest, taxes, insurance and HOA) divided by gross monthly income. Back-end adds every other monthly debt — car loans, student loans, credit-card minimums, child support or alimony and other loans — before dividing. Lenders look mostly at the back-end ratio.

What counts as a debt?

Payments that appear on a credit report or a court order: loans, card minimums, support obligations, other mortgages. Utilities, phone, insurance, groceries, childcare and subscriptions are living expenses, not debts, and are not in the ratio.

What ratio do lenders want?

Conventional loans usually look for a back-end ratio of 36% or less, with approvals up to about 45–50% possible with strong credit or automated underwriting. FHA loans go to about 43%, sometimes higher with compensating factors. VA loans use 41% as a guideline and also check residual income. These are common guidelines, not promises; each lender decides.

Gross income a lender can document and expect to continue: salary, regular overtime and bonuses with a history, self-employment net income from tax returns, and in some cases retirement, support or rental income. Lenders decide what counts and how it is averaged.

Debt-to-Income (DTI) Calculator

See your front-end and back-end debt-to-income ratios from your own income, debts and a proposed housing payment, and the payment that keeps you under the common lender guidelines.

Your debt-to-income ratios

Enter your gross monthly income and a housing payment to see the ratios.

An estimate from your own numbers — not financial advice. Lenders calculate income and debts their own way and make the decision. Talk to a lender and a licensed agent.

How it's calculated

Front-end DTI = housing payment ÷ gross monthly income.
Back-end DTI = (housing payment + all other monthly debts) ÷ gross monthly income.
Payment that keeps you under a limit = income × the limit − your other monthly debts.
"Compute it" builds the payment from the standard fixed-rate mortgage formula plus the yearly taxes and insurance you enter, divided by twelve, plus HOA.

Guidelines, not promises

The 36%, 43% and 41% figures are how conventional, FHA and VA loans are commonly underwritten. They are facts about typical guidelines, not an offer or a promise of approval: credit score, reserves, down payment, the property and each lender's own rules all matter, and lenders decide.

An estimate from your own numbers, not financial advice. Talk to a lender about pre-approval and to a licensed agent about the homes in your range. Not sure about buying yet? Try the rent vs. buy calculator.

Know your range? Start the search.

A licensed real-estate professional can show you homes that fit the payment you are comfortable with.

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Debt-to-income questions

What is the difference between front-end and back-end DTI?: Front-end is the proposed housing payment alone (principal, interest, taxes, insurance and HOA) divided by gross monthly income. Back-end adds every other monthly debt — car loans, student loans, credit-card minimums, child support or alimony and other loans — before dividing. Lenders look mostly at the back-end ratio.
What counts as a debt?: Payments that appear on a credit report or a court order: loans, card minimums, support obligations, other mortgages. Utilities, phone, insurance, groceries, childcare and subscriptions are living expenses, not debts, and are not in the ratio.
What ratio do lenders want?: Conventional loans usually look for a back-end ratio of 36% or less, with approvals up to about 45–50% possible with strong credit or automated underwriting. FHA loans go to about 43%, sometimes higher with compensating factors. VA loans use 41% as a guideline and also check residual income. These are common guidelines, not promises; each lender decides.
Which income counts?: Gross income a lender can document and expect to continue: salary, regular overtime and bonuses with a history, self-employment net income from tax returns, and in some cases retirement, support or rental income. Lenders decide what counts and how it is averaged.

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