What is a Good Debt-to-Income (DTI) Ratio?

A good DTI ratio for a mortgage is 36% or below. Most lenders approve loans up to 43% back-end DTI—the CFPB's qualified mortgage ceiling. Your front-end DTI (housing costs only) should stay at or below 28%. Enter your income and monthly debts above to see exactly where you stand.

What DTI Ratio Do Mortgage Lenders Require?

Lenders generally adhere strictly to the "28/36 Rule":

• Ideal (≤ 36%): This is the golden standard. If your total monthly debt (including your new proposed mortgage payment, car loans, and credit cards) is 36% or less of your gross income, lenders view you as extremely low risk.
• The Cutoff (43%): Under Consumer Financial Protection Bureau (CFPB) guidelines, 43% is the absolute maximum DTI ratio for what is considered a "Qualified Mortgage" (a loan with the strongest federal protections against predatory lending).
• Exceptions (Up to 50%): Some FHA lenders and specific Fannie Mae automated underwriting systems will approve borrowers with DTIs approaching 50%, provided they have massive "compensating factors" (like perfect credit or vast cash reserves).

What Counts as "Debt" in the Formula?

What Is the Difference Between Front-End and Back-End DTI?

Lenders actually calculate two distinct DTI numbers when you apply for a mortgage:

• Front-End DTI (The Housing Ratio): This is the percentage of your income dedicated solely to your new housing payment (PITI: Principal, Interest, Taxes, and Insurance). Most conventional lenders want this below 28%.
• Back-End DTI (The Total Debt Ratio): This is the percentage of your income dedicated to your housing payment plus all other recurring monthly debts (car loans, student loans, credit cards). This is the number that typically cannot exceed 43%.

To learn more about how these ratios impact your mortgage approval chances in 2026, read our comprehensive guide on Front-End vs Back-End DTI (CFPB Guidelines).