How do I calculate DTI for a conventional loan?
Add the proposed housing payment and other required monthly debt payments. Divide that total by your qualifying monthly income before taxes, then multiply by 100.
What this actually means.
Housing includes principal and interest, property taxes, insurance, mortgage insurance and applicable association dues. Count any CDD charge once, including when it is already in the tax bill. Student loans and some other debts have program-specific rules. The lender must verify which income can be used. DTI does not include every living expense, so check your take-home budget too.
A simple example
Illustration only. This is not an approval or a loan offer.
Where this can move.
Verified income, actual taxes and insurance, association or CDD charges, program-specific debt treatment and new debts before closing.
Check the sources
Sources checked . Program guidance and lender requirements can change.
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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.