Debt-to-Income Ratios

Your debt-to-income ratio is one of the many things a lender considers when approving your mortgage loan application.  The debt-to-income ratio, also referred to as your qualifying ratio, is a simple way of showing what percentage of your income is available for a mortgage payment after you meet all your other continuing obligations.  The ratios are percentages that refer to your debt load.  The ratios can be different for different types of mortgage loans.  Click on the links below for more detail on each type of loan and it's customary ratio.

Conventional Loans:  28/36

FHA Loans:  29/41

VA Loans:  41

These ratios are general guidelines.  Under certain circumstances lenders may allow somewhat higher ratios for individual borrowers. 

It is important to meet with a mortgage broker or lender as a first step before you begin shopping for a new home.  Becoming familiar with the loan programs and options that may be available to you, will help you to determine the price range of homes and loan payments that best fit your budget.