Debt-to-Income Ratio Calculator
Calculate your front-end and back-end DTI ratios to see if you qualify for a mortgage. Find out if you meet conventional, FHA, or VA loan requirements.
Understanding DTI Ratios
Front-End DTI
Housing costs only (mortgage + property tax + insurance + HOA) divided by gross income. Ideal: ≤28%. This shows your housing affordability independent of other debts.
Back-End DTI
ALL monthly debts divided by gross income. This is the primary qualification metric. Conventional: ≤43%, FHA: ≤50%, VA: flexible. Lower DTI = better rates.
Bergen County Context
Median income: $107K/year ($8,900/mo). Average property tax: $12K/year ($1,000/mo). High property taxes mean Bergen County buyers need strong income-to-debt ratios.
Frequently Asked Questions
What is a good debt-to-income ratio?
Ideal is 28/36 (28% front-end, 36% back-end). Most conventional loans allow up to 43%, FHA up to 50% with strong credit (680+), and VA loans are flexible but prefer under 41%. Lower DTI qualifies for better rates and larger loan amounts.
What debts are included in DTI calculation?
Included: mortgage, property tax, insurance, HOA, car loans, credit card minimum payments, student loans, personal loans, alimony/child support. NOT included: utilities, groceries, insurance premiums, or debts with less than 10 months remaining.
How can I improve my DTI ratio?
Best strategies: (1) Pay down credit cards (fastest impact), (2) Pay off car loans, (3) Increase income (raise, co-borrower, side job), (4) Avoid new debt before applying, (5) Larger down payment reduces monthly mortgage payment, (6) Student loans in deferment may not count depending on lender.
Can I qualify with high DTI?
Yes, but options narrow. DTI 43-50%: FHA only (need 680+ credit). DTI 50%+: VA loans with strong compensating factors (high residual income, excellent credit, cash reserves). Manual underwriting may be required. Better to pay down debts first if possible.
Get Pre-Qualified Today
Know your DTI? Let CMG Home Loans run your full credit and income analysis for accurate pre-qualification.
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