Debt To Income Ratio To Buy — A House

The percentage of your gross monthly income used to pay all monthly debt obligations, including your new mortgage, car loans, student loans, and credit card minimums. Ideal: 36% or lower. Maximum DTI by Loan Program (2026)

The percentage of your gross monthly income that goes strictly toward housing costs, including mortgage principal, interest, taxes, and insurance (PITI). Ideal: 28% or lower. debt to income ratio to buy a house

Lenders evaluate two specific ratios to determine affordability: The percentage of your gross monthly income used

The maximum allowable DTI varies significantly depending on the loan type you choose: Understanding Debt-to-Income Ratio - Citizens Bank Ideal: 28% or lower

To buy a house, lenders primarily look for a , though an ideal ratio is 36% or less . Lower ratios demonstrate to lenders that you can manage monthly payments while still covering living expenses and unexpected costs. Understanding DTI Types