What's a good debt-to-income ratio?
- 36% or less: healthy — lenders like to see this.
- 37–43%: manageable, and still within most mortgage limits, but tighter.
- Over 43%: high — it can be hard to qualify for new loans, and it's a sign to pay down debt.
There are two versions: front-end DTI counts only housing, while back-end DTI (the headline number) counts all debt. Mortgage lenders care most about the back-end figure.
How to lower your DTI
- Pay down debt — especially high-interest balances; use the debt payoff calculator.
- Avoid new debt before applying for a mortgage.
- Increase income — side income counts toward the ratio.
Take action
Consolidate
Lower-rate loans
Consolidating high-interest debt can ease monthly payments.
Check rates →Frequently asked questions
Should I use gross or net income?
Gross (pre-tax) income — that's what lenders use to calculate DTI.
Do utilities and groceries count?
No — DTI counts debt payments (loans, cards, housing), not everyday living expenses.
Related tools
See how much home this supports on the home affordability calculator.