True Blue Lending

Residential · Calculator

Debt-to-Income

Front-end and back-end DTI versus the agency thresholds for every loan type — and the exact gap between where you are and where you need to be.

Loan Program

Standard conforming loan — Fannie/Freddie limits.

Front-end max28%Back-end max43%

Monthly Income

Pre-tax — W-2 box 1 ÷ 12 or self-employed equivalent.

Documentable rental, alimony, side income with 2+ year history.

Proposed Housing Payment

Monthly Debts

Conventional qualification

Over the Limit

Exceeds at least one threshold. See the Path to Qualify panel for next steps.

DTI Ratios

Front-End · Housing only40.55% / 28%
Back-End · Housing + all debts53.88% / 43%

The Math

Total Monthly Income$6,000.00
Housing Payment$2,433.00
Other Debts$800.00
Total Obligations$3,233.00
Front-End DTI40.55%
Back-End DTI53.88%

Path to Qualify

Max Affordable Housing · At your current income + debts.$1,680
Reduce Housing By$753
Or Pay Off Debt$653
Or Add Income$2,689 / mo

Highest impact to retire (largest first):

  1. Car Payment$400.00
  2. Student Loans$250.00
  3. Credit Cards$150.00

Frequently asked

About this calculator.

What is DTI and why do lenders care?

DTI (debt-to-income ratio) is the percentage of your gross monthly income that goes toward debt payments. Lenders use it to gauge whether you can comfortably make a new mortgage payment on top of your existing obligations. The lower your DTI, the more room you have — and the better the rate you usually get.

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

Front-end DTI counts only your housing payment (PITI + HOA + PMI) divided by gross income. Back-end DTI counts housing PLUS all other recurring debt: car loans, student loans, credit-card minimums, child support, etc. Most underwriters care more about back-end; VA cares almost exclusively about back-end (and residual income).

What DTI do I actually need to qualify?

Conventional ideally ≤43% back-end (with stretch to 50% for strong files). FHA up to 43% standard, 50%+ with compensating factors. VA up to 41% with residual-income test. USDA up to 41%. Jumbo strictest at 36–43% depending on lender. The thresholds in this calculator are agency-standard; True Blue has access to lenders that go higher with the right offsetting strengths.

How do I lower my DTI?

Three levers: (1) raise income (W-2 raise, second job, document side income that's been hitting your bank for 2+ years), (2) eliminate debts (pay off the smallest balance, then the next — credit-card minimums kill DTI), or (3) buy less house (lower price, lower PITI). The "Income Needed" and "Debt to Pay Off" numbers above tell you the exact amount on each lever.

Are 401(k) contributions counted as debt?

No — 401(k) contributions, HSA contributions, and most other voluntary deductions are not considered debt for DTI. Only items that would appear on your credit report or as legal obligations (alimony, child support) count.

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DTI tighter than you'd like?

There's almost always a workaround.

Compensating factors, alternative-doc programs, debt consolidation in the new loan, gift-fund structuring — the right combination beats trying to muscle through a strict DTI box.

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