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Lenders use DTI to measure your ability to manage monthly payments. It is calculated by dividing your total monthly debt obligations by your gross (pre-tax) monthly income.
: Your total monthly debt—including the new mortgage, credit cards, car loans, and student loans—should ideally be 36% or less. Maximum Limits by Loan Type : credit to debt ratio to buy a house
: Generally allow for higher ratios, often up to 43%, and sometimes as high as 50% or 57% in specific cases. Lenders use DTI to measure your ability to