The Importance of DTI

One of the most overlooked factors in securing a home is DTI – debt-to-income ratio. Easy enough to figure out: divide monthly debt by monthly income.

These days most lenders require a DTI to be below 36 percent, although some lenders will allow a DTI as high as 43 percent.

However, it’s incumbent on the would-be homeowner to honestly assess what percentage of their they are willing to devote to housing and still maintain their lifestyle.

Leave a Comment