As a general guideline, 43% is the highest DTI ratio a borrower can have and still qualify for a mortgage. Ideally, lenders would prefer a debt-to-income ratio of less than 36%, with no more than 28% of that debt going toward paying a mortgage or rent. 2 The maximum DTI ratio varies from one lender to another. FHA loans are mortgages backed by the U.S.
UU. FHA loans have more permissive qualification requirements than other loans. Borrowers must have a minimum credit score of 580 to qualify for the loan. The maximum DTI for FHA loans is 57%.
However, each lender is free to set their own requirements. This means that some lenders may stick to the maximum DTI of 57%, while others may set the limit closer to 40%. Research and talk to each lender you're considering working with. They will be able to tell you what ranges they accept.
Apply with Rocket Mortgage and check the mortgage options you're eligible for based on your DTI, your credit and your specific financial situation. Your DTI helps the mortgage lender determine how much cash you have left each month and how much of the mortgage payment you can afford. Expressed as a percentage, the debt-to-income ratio for a mortgage is the part of your gross monthly income (before taxes) that goes toward paying debts, including mortgage payments or rent, credit card debt, and car loans. The Rocket Mortgage Learning Center is dedicated to providing you with articles about buying homes, types of loans, mortgage basics and refinancing.
