DEBT-TO-INCOME RATIO

The comparison of debt payment expenses to overall income. DTI is calculated by dividing monthly debt by gross monthly income and is expressed as a percentage. It’s one way that lenders measure your ability to manage payments and repay debts. For FHA loans, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.