Although every mortgage lender has slightly different qualifying DTI ratios, we require a back-end DTI ratio not to exceed 45% when qualifying for a mortgage. Below is an example of a borrower with a gross annual income of $60,000.

Using Yearly Figures:

Gross Income of $60,000
$60,000 x .45 = $27,000 allowed for housing expense plus recurring debt.

Using Monthly Figures:

Gross Income of $5,000 ($60,000/12)
$5,000 x .45= $2,250 allowed for housing expense plus recurring debt.

Total minimum monthly expenses including new purposed mortgage payment should not exceed $2,250