FHA debt-to-income ratio: how to calculate it
Estimate your total debt-to-income ratio by adding the proposed monthly housing payment to your other monthly debt payments, dividing by gross monthly income, and multiplying by 100. Gross income is before taxes and deductions. An estimated DTI is not an FHA approval decision: the lender must verify which income and debts count and apply the relevant underwriting requirements.
DTI formula and worked example
(Monthly housing payment + other monthly debt payments) ÷ gross monthly income × 100.
For example, ($1,800 housing + $600 other monthly debts) ÷ $6,000 gross monthly income × 100 = 40%. This is illustrative arithmetic, not an approval threshold. A lender must verify the inputs and underwriting requirements.
CFPB: DTI definition and calculation
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