Question 1

What’s the difference between front-end and back-end DTI?

Accepted Answer

Front-end DTI is just your proposed housing payment as a share of gross income. Back-end DTI adds every other recurring debt — car loans, credit cards, student loans, and similar — on top of housing. Lenders usually weigh back-end DTI more heavily since it reflects your total debt burden.

Question 2

What debts count toward back-end DTI?

Accepted Answer

Generally any recurring, reported debt obligation: car loans, minimum credit card payments, student loans, personal loans, and existing mortgage or rent if you’re not moving. Living expenses like groceries, utilities, or insurance premiums are not counted, since they aren’t reported debt.

Question 3

Can I qualify for a mortgage with a back-end DTI above 43%?

Accepted Answer

Sometimes — different loan programs allow higher DTI with compensating factors like a large down payment, strong credit score, or significant cash reserves. FHA loans in particular can allow back-end DTI up to 50% in some cases. It ultimately comes down to the specific lender’s underwriting guidelines.

Debt-to-Income (DTI) Ratio Calculator

Two ratios, both against gross income

Common questions