Tools
Debt-to-Income (DTI) Calculator
Add up your monthly debts against your income and see where your ratio lands against common lender limits.
What to know in Colorado
- Lenders use your DTI ratio as a primary qualification metric—knowing yours before applying sets realistic budget expectations.
- Colorado's higher-than-average home prices mean DTI ratios are a common barrier; strategic debt payoff can significantly increase buying power.
- Second home and vacation property mortgages are included in DTI, which is critical for buyers considering mountain retreats.
Frequently asked questions
Generally, lenders prefer a DTI ratio of 36% or lower, though many conventional loans allow up to 45% and FHA loans allow up to 50%. A lower DTI improves your chances of approval and may qualify you for better rates.
DTI includes all recurring monthly debt obligations: mortgage or rent, car loans, student loans, credit card minimum payments, personal loans, alimony, and child support. It does not include utilities, groceries, insurance premiums, or other living expenses.
You can lower your DTI by paying down existing debts, avoiding new debt, increasing your income, or extending the term of existing loans to reduce monthly payments. Paying off smaller debts entirely can have an immediate positive impact.
Front-end DTI (housing ratio) includes only housing costs—mortgage, taxes, insurance, and HOA. Back-end DTI includes all monthly debts plus housing costs. Most lenders look at back-end DTI, but some programs have separate front-end limits around 28%–31%.
Want these numbers for your scenario?
Start a pre-approval online, or call Andrew and he'll walk through the math with you.