Debt-to-income ratio, or DTI, compares qualifying monthly debt obligations with gross qualifying monthly income. It is an underwriting measurement—not a complete household budget and not a recommendation for how much you should spend.
What may be included
The proposed housing payment and liabilities such as auto, student, personal, credit card, alimony or support obligations may be included according to program rules.
Gross versus net income
DTI typically uses qualifying gross income before taxes, while your real budget is paid from take-home income after taxes, benefits, savings and daily expenses.
Why income can differ
Overtime, bonus, commission, self-employment, part-time, rental and other income may require history, documentation and a calculation that differs from current deposits.
Why the payment can differ
The qualifying housing expense can include principal, interest, taxes, insurance, mortgage insurance, HOA dues, CDD assessments and other required property charges.
Compensating strengths
Automated or manual underwriting may consider credit, reserves, down payment, payment history and other factors along with DTI.
Comfort comes first
Start with a payment that supports your broader goals. Qualification should confirm feasibility, not replace your personal financial judgment.
Published by The Rice Financial Group. Reviewed August 4, 2026. Mortgage requirements change; confirm current guidance for your transaction.