Helping Military and Civilian families realize the dream of homeownership since 1990

Laura Borja- Home Loan expert- NMLS 199107

A debt to income ratio (DTI) is the percentage of your qualifying income  that is allocated to debt.

What is included in the DTI?

  • The estimated total housing payment for the new mortgage loan
  • All debts reflected on the credit report
  • Estimated payments for any deferred student loans with zero payment on the credit report
  • Alimony and child support
  • Payments on State and Federal income tax  payment agreements
  • Any other debts that you are obligated to pay
  • In community property states, the debts of the non-purchasing spouse will be included in the DTI calculation.


Installment debt with less than 10 months remaining could be excluded from the DTI calculation.


Paying off installment and revolving debt to qualify IS allowed.

What is the max  DTI?

USDA has strict DTI guidelines which dictate ratios for both housing as well as the total debt ratio.

The target housing ratio is 29%

The target total debt to income ratio is 41%


Buyers with credit scores over 680 who also have compensating factors are allowed higher ratios

32% for housing

44% for total DTI.

This overview is not all inclusive and does not include all guidelines or potential qualifying situations. Contact us or your lender for additional information that applies to your situation.

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Laura Borja  | Senior Mortgage Consultant | NMLS#199107

Cell: (619) 992-4061

27271 Las Ramblas ste 350  Mission Viejo CA 920691

This website is not authorized by the New York State Department of Financial Services to accept mortgage loan applications for properties located in New York. Intended for California Consumers Only.




Laura Borja- Home Loan expert- NMLS 199107
Laura Borja- Home Loan expert- NMLS 199107
Laura Borja- Home Loan expert- NMLS 199107