Debt Ratio Calculator
The debt income ratio (DTI) is the ratio of recurring debt vs. gross income on a monthly or annual base. Normally, there are two main types of DTI:
- Front-End DTI—the portion of income spent on housing, such as rental, mortgage, property tax, homeowners association (HOA) fee, etc.
- Back-End DTI—this including all recurring debts, including housing cost.
In the United States, lenders use DTI to qualify borrowers. Normally, the Front-End DTI/Back-End DTI limits for conventional financing are 28/43, the Federal Housing Administration (FHA) limits are 31/43, and the VA loan limits are 41 straight.