Debt-to-Income Ratio Calculator

Factoring your debt-to-income ratio is a critical step to qualifying for any mortgage program. This debt-to-income ratio calculator is designed to help you understand what you need to do in order to qualify and close on a mortgage loan. Today, the debt ratio requirements for an FHA loan are 29% front-end ratio and 41% back-end ratio, based upon gross income. Conventional loan debt ratios are 28% front-end and 36% back-end, based upon gross income. Front-end exceptions are made based upon back-end debt, in addition to credit quality for both-front and back-end.

Definitions:

Front-End Ratio - This is your proposed monthly PITI mortgage payment (Principal, Interest, Property Tax, and Insurance).
Back-End Ratio - This is the combined monthly payments for your proposed mortgage, installment loans, revolving credit card payments, child support, alimony, auto loans, student loans, and tax repayment plans. Also, it includes any repayment plans for collections & judgments. If you have less than 9 months of payments before they are paid off on any of the above, they are not considered to be apart of your back-end debt ratio.
What is NOT Factored - Do not include these debts as part of your ratio calculations: car insurance payments, health insurance payments, home phone bills, electric bills, gas bills, and other miscellaneous bills not reflected on your credit report.

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