If you’re wondering how much home loan you may be able to qualify for, you need to know about DTI—Debt to Income Ratio.

What Is A Debt-To-Income Ratio?

Your proposed monthly housing expenses are added together. These include principal, interest, taxes, insurance, mortgage insurance (if required) and any applicable homeowner’s association or similar fees. This total is combined with your regular monthly debt payments, such as those for credit cards or car loans. Your DTI is the percentage of your gross monthly income represented by this total.


Monthly Housing and Debt Payments = $2,000

Monthly Income = $6,000

DTIR = 33%

In most instances, this ratio should not exceed approximately 43%.

What Other Factors Are Involved in Qualifying For A Home Loan?

While your DTI is the primary basis for determining a maximum loan amount, there are other factors involved in qualifying for a loan. These factors include but are not limited to loan program parameters, credit, employment history and available funds to close.

Would you like to see how all of this translates price-wise for your income? Reach out, and we'll be happy to help!