Calculate Your Debt-to-Income Ratio

Your DTI compares your monthly debt payments to gross monthly income. California lenders typically require DTI below 43% for conventional loans, though some programs allow up to 50% with strong compensating factors.

Your Income & Debts

Monthly Debts

Your DTI Ratios

Enter your details to see your DTI ratios.

What Is Debt-to-Income Ratio?

DTI measures what percentage of your monthly gross income goes toward debt payments. Lenders use DTI to assess your ability to manage monthly mortgage payments alongside existing debts.

Two Types of DTI:

Front-End DTI (Housing Ratio)

Monthly housing costs ÷ Gross monthly income

Includes: Principal, interest, taxes, insurance (PITI), HOA fees, and PMI.

Back-End DTI (Total Debt Ratio)

Total monthly debt ÷ Gross monthly income

Includes: All housing costs + car loans, student loans, credit cards, personal loans, and other debts.

California Mortgage DTI Requirements

Conventional Loans:

  • Ideal: Front-end 28% / Back-end 36%
  • Maximum: Front-end 33% / Back-end 43%
  • With compensating factors: Up to 50% back-end

Compensating factors:

  • High credit score (740+)
  • Large down payment (20%+)
  • Substantial reserves (6+ months)

FHA Loans:

  • Standard: 31% front-end / 43% back-end
  • With good credit (640+): Up to 46.9% back-end
  • With excellent credit (680+): Up to 56.9% back-end
  • FHA is generally more flexible with high DTI than conventional loans.

VA Loans:

  • No front-end requirement.
  • Back-end Guideline: 41%, but can be higher.
  • Key Factor: Residual income must meet VA tables for family size. Lenders focus more on this than a strict DTI limit.

Jumbo Loans:

  • Preferred Max: 36% back-end.
  • Absolute Max: 43% with an exceptional profile.
  • Stricter than conventional due to the larger loan size.

Non-QM / Bank Statement Loans:

  • Typical Max: 43-50% back-end.
  • Income can be calculated from business revenues, not just personal income.
  • Higher DTI may be allowed with a larger down payment.

What Income Can Be Used for DTI Calculation?

Lenders must be able to verify all income sources with documentation for them to count towards your DTI calculation.

  • ✓ Salary and wages (W-2)
  • ✓ Bonuses (2-year average)
  • ✓ Overtime (2-year average)
  • ✓ Commission (2-year average)
  • ✓ Self-employment (2-year tax returns)
  • ✓ Rental income (75% of gross rents)
  • ✓ Social Security / Pension
  • ✓ Alimony / Child support
  • ✓ Investment / Disability income

What Debts Count Toward DTI?

Always Included:

  • Mortgage payments (PITI, HOA, PMI)
  • Car loans and leases
  • Student loans
  • Credit card minimum payments
  • Personal loans
  • Alimony and child support

Never Included:

  • Utilities (electric, gas, water)
  • Cell phone bills
  • Groceries and household expenses
  • Childcare expenses
  • Medical expenses
  • Insurance premiums (other than home)