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Hi all — Dream Home Mortgage here. We see this one constantly, so we wanted to clear it up for anyone stuck on it.
A lot of buyers get told their debt-to-income ratio is "too high" at 43% and assume they're out. That 43% figure isn't a hard cap — it's just where standard conventional underwriting gets cautious. In reality, we approve FHA loans up to 57% DTI and conventional up to 49.9%, provided the rest of the file is solid (credit history, reserves, steady income).
A few things worth knowing:
We wrote a full breakdown of the limits by loan type, when consolidating debt first actually helps, and what not to do before applying:
https://dreamhomemortgage.com/how-much-debt-to-income-ratio-for-a-mortgage/
There's a free DTI calculator on there too if you just want to check your own number. Happy to answer questions in the thread — that's what we're here for.
(Dream Home Mortgage, a division of Brazos National Bank | NMLS #473879)
A lot of buyers get told their debt-to-income ratio is "too high" at 43% and assume they're out. That 43% figure isn't a hard cap — it's just where standard conventional underwriting gets cautious. In reality, we approve FHA loans up to 57% DTI and conventional up to 49.9%, provided the rest of the file is solid (credit history, reserves, steady income).
A few things worth knowing:
- The back-end ratio (all debt + your future mortgage) is what lenders weigh most.
- Compensating factors — savings, good credit, stable employment — can offset a higher ratio.
- New debt right before closing (financing a car, a new card, a missed payment) sinks more approvals than a high DTI ever does.
We wrote a full breakdown of the limits by loan type, when consolidating debt first actually helps, and what not to do before applying:
https://dreamhomemortgage.com/how-much-debt-to-income-ratio-for-a-mortgage/
There's a free DTI calculator on there too if you just want to check your own number. Happy to answer questions in the thread — that's what we're here for.
(Dream Home Mortgage, a division of Brazos National Bank | NMLS #473879)
