How do I calculate DTI for a conventional loan?
Add the new conventional housing payment (P&I + property taxes + insurance + PMI + HOA + CDD if any) plus credit card minimums, car loans, student loans, child support, and alimony. Divide by gross monthly income. Don't include normal living expenses. Front-end DTI uses just housing; back-end uses the full debt stack.
What this actually means.
Numerator (back-end DTI): full housing payment + minimum monthly payments on credit cards, auto loans, student loans (Fannie and Freddie have specific student-loan calculation rules), personal loans, child support, alimony. Don't include groceries, fuel, utilities. Denominator: gross monthly income before taxes — base salary, plus stable overtime/bonus/commission with two-year history, plus other documented qualifying income (Social Security, pension, disability with appropriate gross-up). Subject to Fannie/Freddie guidelines.
Where this can move.
Income type and history, recurring debts shown on credit, automated vs manual underwriting, compensating factors, and overlays can change the answer.
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More conventional questions on DTI.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.