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.
Plain-English explanation
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.
What can change the answer?
Income type and history, recurring debts shown on credit, automated vs manual underwriting, compensating factors, and overlays can change the answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
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.