Your credit score gets the headlines.
DTI quietly decides if you close.
Debt-to-income is one number. It decides whether the program opens for you, which rate bucket you land in, and how much house you're allowed to want. Most people get denied on DTI after working on credit for six months. This page fixes that.
Two numbers.
One ratio.
Gross income is pre-tax. That matters — people calculate DTI on take-home and scare themselves unnecessarily. The lender uses the number on your paystub before taxes, health insurance, and 401(k).
Each program
has its own ceiling.
The surprising list.
In the ratio
- ·Minimum credit card payment (even if you pay in full)
- ·Auto loan payment (not lease buyout)
- ·Student loan minimum (special rules for IBR/deferred)
- ·Personal loan + BNPL with term payments
- ·Child support + alimony (if paying)
- ·Proposed PITI (principal, interest, taxes, insurance, HOA, MI)
Not in the ratio
- ·Utilities (electric, gas, water, internet)
- ·Groceries + gas + everyday spending
- ·Car insurance, health insurance, phone bills
- ·Streaming + subscriptions + gym
- ·Taxes withheld from paycheck
- ·401(k) contributions
Four moves
that actually work.
Look for the 10-month rule.
Any installment loan with 10 or fewer remaining payments can be excluded from DTI entirely (Fannie/Freddie allow it, some FHA lenders too). Coast that loan to zero and it vanishes from the ratio.
Kill the smallest minimum first — not the biggest balance.
A $2,200 card at $75/mo drops DTI more per dollar than a $22,000 student loan. DTI is a payment ratio, not a balance ratio. The Reducer sorts this for you automatically.
Document income you already have.
Overtime, bonus, commission, side-gig — if you have a 2-year history, a good LO can add it. People under-report their DTI-eligible income all the time. A $500/mo documented bonus can move you an entire program tier.
Don't consolidate 30 days before you apply.
A new personal loan = new tradeline, new minimum, fresh inquiry, age-of-accounts drops. It can LOWER your DTI on paper but shake the rest of the file. Consolidate 90+ days out or not at all.
Ask what everyone's asking.
+What is a good DTI ratio for a mortgage?
43% or lower opens almost every conventional program. FHA goes to 50%, sometimes 56.9% with compensating factors. VA cares more about residual income than ratio. The sweet spot for best pricing is under 38%.
+What debts count toward DTI?
Monthly minimums: credit cards, auto loans, student loans, personal loans, child support, alimony, and the proposed mortgage PITI. What does NOT count: utilities, groceries, streaming subscriptions, car insurance, phone bills. Lenders look at tradelines that report to the bureaus.
+Can I lower my DTI quickly?
Yes. The fastest moves: pay off any debt with less than 10 months remaining (it drops off the DTI entirely), eliminate a credit card balance so the minimum disappears, or document a raise/overtime history. Run the DTI Reducer to see which debt gives you the most DTI relief per dollar.
+Does my rent count toward DTI?
No. Current rent is replaced by the proposed mortgage payment, so only the new PITI counts. This is one reason buying can look affordable even when rent feels tight.
+Does paying off a loan help more than paying it down?
Almost always yes — because DTI is driven by the monthly payment, not the balance. Cutting $22,000 off a $22,000 student loan only helps if it zeroes the payment. Cutting $5,000 off a $6,500 credit card, though, can remove the minimum entirely if you call and close to minimum.
Know the number. Now change it.
The Reducer shows you your DTI now, after-paydown, and which debt unlocks which program. Printable. Free. No email wall.