Your debt-to-income ratio is the percentage of your monthly income that goes toward debt payments.
Besides looking at your credit score, payment history, assets, and cash flow, they also consider your debt-to-income ratio.
Debt-to-income ratio (DTI) is the percentage of your monthly gross income that goes toward paying existing debts.
You can have a DTI ratio as high as 43% and still get approved for a mortgage, though Rose says lenders would ideally like to see a total DTI ratio of 36% or less with 28% going toward housing expenses (front-end DTI).
Debt-to-income ratio frequently asked questionsIs 50% a good debt-to-income ratio?
Persons:
Scott Bridges, Rose, Jeff Rose