How do I calculate DTI for an FHA loan?
DTI compares monthly debts to gross monthly income. Add the new FHA housing payment (P&I + property taxes + homeowners insurance + MIP + HOA + CDD if any) plus credit card minimums, car loans, student loans, child support, and alimony. Divide by your gross monthly income. Front-end DTI uses just the housing payment; back-end DTI uses the full debt stack.
What this actually means.
Numerator (back-end DTI): new full housing payment (principal + interest + taxes + insurance + monthly MIP + HOA + CDD), plus minimum monthly payments on credit cards, auto loans, student loans (FHA has specific student-loan calculation rules — confirm with the lender), personal loans, child support, and alimony. Do not include normal living expenses like groceries, utilities, or fuel. 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, child support if court-ordered and likely to continue). Front-end DTI is the same numerator with only the housing payment, divided by the same income. Subject to FHA/HUD guidelines and lender overlays.
What this looks like on a real file.
Where this can move.
Income type and history, recurring debts shown on the credit report, automated vs manual underwriting, compensating factors, and lender overlays can change the answer.
The cleanest action from here.
Ask the question. Get the straight answer.
Send the scenario and I'll tell you what I'm seeing. No application fee. No long form just to get a basic answer.
Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.