FHA DTI Mortgage Calculator

Borrowers can calculate their front-end and back-end debt-to-income ratio for FHA loans using the FHA DTI Mortgage Calculator powered by Gustan Cho Associates. FHA loans are the most popular loan program for first-time homebuyers, borrowers with bad credit, and borrowers with high debt-to-income ratios. HUD, the parent of FHA, has a maximum front-end and back-end debt-to-income ratio cap on FHA loans.

What Is The Maximum Debt-To-Income Ratio For An FHA Loan

One of the most frequently asked questions at Gustan Cho Associates is what is the maximum debt-to-income ratio allowed for an automated approval per the automated underwriting system (AUS) on FHA loans. Find a comprehensive FHA DTI mortgage calculator guide for 2025:

Another frequently asked question is what is the maximum debt-to-income ratio allowed on manual underwriting on FHA loans.

Comprehend FHA debt-to-income ratio limits, AUS vs. manual underwriting rules, compensating factors, and how first-time home buyers with high DTI can qualify for FHA loans with no overlays at Gustan Cho Associates. Calculate your ratios now and gain insights on your eligibility! We will answer all of the important FAQs about debt-to-income ratios on FHA loans in this blog. We will also address how to use the FHA DTI mortgage calculator for you to be able to get the front-end and back-end debt to income ratios on FHA loans.

What Is the Maximum Debt-to-Income Ratio Allowed for FHA Loans Through Automated Underwriting Systems?

The automated underwriting system (AUS) approves a front-end debt-to-income ratio of up to 46.9% and a back-end ratio of 56.9% for FHA loans. To facilitate quick and easy calculations of their debt-to-income ratio, users can utilize the FHA DTI Mortgage Calculator developed by Gustan Cho Associates. Mortgage lending is not static, and therefore, knowing how to calculate one’s debt-to-income (DTI) ratio, especially when it comes to an FHA loan, is of utmost importance for almost every first-time home buyer in these challenging days of high living expenses and interest rates.

THE FHA DTI Mortgage Calculator is one of the tools designed by Gustan Cho Associates to help borrowers understand how financially qualified they are for FHA financing.

In addition to calculating the front and back end DTI, the tool also takes into consideration principal and interest, FHA real estate MIP, property taxes, homeowners insurance, mortgage insurance, HOA dues, and, in some cases, non-medical collections balance over $2,000 at 5% of their balance, and assorted other collections. For all DTI Ratios, FHA has observed Flexible Guidelines for Creditworthy Borrowers, the Recompute DTI Calculator With Paid Refinance Guidelines. HUD confirms an alignment as of 2025 with AUS and Manual Underwriting, Automated Underwriting Systems. You do not need disclosures when home financing surprises you.

The FHA DTI calculator eliminates the need for constant communication with loan officers when there are changes in figures during the home shopping process. It’s important to note that each mortgage loan program has specific requirements for front-end and back-end debt-to-income ratios. The FHA DTI Mortgage Calculator allows users to compute these ratios for AUS-approved and manually underwritten FHA loans.

At Gustan Cho Associates, we understand the need for precision in our calculations. That’s why, over the years, we’ve built our calculators with mortgage knowledge from all walks of life.

By doing this, we’ve removed the frustration that guesswork brings. This is why borrowers can enter their gross monthly income or housing expenses without constant consultations with loan officers. Whether you have a FICO score above 580 and need a 3.5% down payment, or fall between the 500-579 range and need to pay 10% down, this resource offers you HUD-compliant insights.
This is why we have tried to draw on the years of respect we’ve earned from directly HUD-backed case studies on our clients’ challenging profiles settled with FHA loans.

FHA Loan Debt-to-Income Guidelines by HUD

Broadening the horizons, the FHA DTI Mortgage Calculator eliminates perplexing computations. Begin with the input of the household’s gross income, as the denominator in the front and back ratio formulas, for both the front-end and back-end of the ratios. In the next expertise, a snippet of the borrowing and the facilitating charges of the lending are used; the loan amounts, the loan periods, and the loan interests, reflecting 2025’s2025′ average FHA loan interests, which are estimated as 6.5% and 7% are also provided.

For individuals with credit scores of 580 and above applying for FHA loans, HUD DTI guidelines specify a maximum front-end debt-to-income ratio of 46.9% and a back-end ratio of 56.9%.

The FHA DTI calculator calculates and sums the provided values of Loan FHA MIP (at the beginning and 1.75) then the anticipated taxes (1-2% of the value of the house for a year), also the Loan MIP of FHA (changing depending on the value of the loan in the line and the duration of the terms) with the insurance loan (prorate monthly ranging 1000-2000 a year).

Meanwhile, borrowers with FICO scores below 580 (down to 500) are subject to HUD guidelines requiring a maximum front-end ratio of 31% and a back-end ratio of 43% on FHA loans. To determine your debt-to-income ratio accurately, utilize the FHA DTI Mortgage Calculator provided by Gustan Cho Associates.

HUD DTI Guidelines on Manual Underwriting

If you need manual underwriting for an FHA loan, you can use the FHA DTI Mortgage Calculator to find your front-end and back-end debt-to-income (DTI) ratio. FHA loans are one of the few loans that allow this process.

Compensating factors are advantages in your financial situation that can help you qualify for a loan, even if you have weaknesses like a lower credit score. Examples include having extra savings or a steady job history.

Here’s how the maximum DTI ratios work based on the number of compensating factors:

No Compensating Factors:

• 31% for front-end DTI (housing costs)
• 43% for back-end DTI (total debt)

One Compensating Factor:

• 37% for front-end DTI
• 47% for back-end DTI

Two Compensating Factors:

• 40% for front-end DTI
• 50% for back-end DTI

Having strengths in your financial situation can help you qualify for higher DTI ratios, giving you more choices for FHA financing.

USEFUL LINK: HUD-Approved List of Compensating Factors

Down Payment Requirements on FHA Loans

HUD guidelines on FHA loans require a 580 credit score to qualify for a 3.5% down payment FHA loan. Borrowers with under a 580 FICO and down to a 500 credit score require a 10% down payment.  The lowest credit score allowed to qualify for FHA loans is 500 FICO. For borrowers with under 580 credit scores and down to 500 FICO, a 10% down payment is required.

One of the best characteristics of the FHA DTI calculator is the detail with which it provides the outputs. For example, it calculates the Principal and Interest. P & I using the amortization formula, then adds MIP (e.g. , MIP of 0.55% per annum for the loans for the period exceeding 15 years and the LTV is less than 95%), then adds them together.

The FHA DTI calculator estimates of property taxes and insurance can be tailored for high cost areas such as the state of California and the state of New York whereas they might to increase the front end ratio in the escrow account. The homes and townhouses associations (HOA) are also common in the townhouses for rapidly growing units, which is one more of the custom fields used to make the simulation real for the escrow account to reflect more accurate estimates.

USEFUL LINK: FHA Loans With High DTI

Use The FHA DTI Mortgage Calculator To Check Your DTI

You’ll need to add scheduled payments for debts such as auto loans, child support, and credit card minimums while ignoring ‘non-debt’ obligations such as utility and rent payments. For each calculation, you determine the ratios instantaneously and provide front-end as housing cost as a percentage of income, and back-end as total debt as a percentage of income.

For borrowers under 580, the caps are shrunk to 31% and 43%, highlighting the need for the calculator in reasonable pre-qualification outcomes.

The FHA DTI Mortgage Calculator at Gustan Cho Associates has been custom designed to get the most accurate front-end and back-end DTI used by mortgage underwriters. There is no other DTI mortgage calculator in the nation that compares to the debt-to-income ratio mortgage calculator powered by Gustan Cho Associates. In the next paragraph, we will cover the minimum agency mortgage guidelines on debt-to-income ratio caps.

Do Lenders Share Uniform FHA DTI Requirements?

This platform created ease of use with borrower focus and features 2025 updates such as the streamlined collection treatment that aligns with HUD’s due moderation in penalty policies on affordability. It’s a given that when you utilize this, you are not only optimizing the numerator and the denominator.

You are working to win; providing room to identify risks to repay the debt and also compensating factors before the application.

Both government-backed and conventional loans set a limit on the debt-to-income (DTI) ratio for their mortgage programs. Some lenders might have stricter rules, even though FHA allows for a higher ratio. Generally, a lower DTI is better since it means you have fewer monthly debts compared to your income. Using the FHA DTI Mortgage Calculator can help you get a pretty accurate idea of your housing costs, including FHA MIP, PMI, taxes, insurance, and any HOA fees that apply.

USEFUL LINK: Mortgage Denial Due To Overlays

Is Approval Possible After a Rejection Based on DTI Overlays?

Many initial homebuyers assume that all mortgage lenders adhere to identical lending criteria for FHA loans, given their government backing. However, this assumption is inaccurate.

While every lender is obligated to ensure their borrowers meet the FHA’s minimum agency guidelines, individual lenders may impose more stringent requirements on FHA loans.

The accuracy of the FHA DTI calculator is crucial in 2025, as we continue to see HUD in the latest Mortgagee Letters, sustaining AUS front-end at 46.9% and back-end at 56.9% for approve/eligible findings for 580+ score borrowers.  In the following paragraph, we will explore a specific case scenario involving FHA lenders incorporating overlays related to debt-to-income ratios.

What is an Acceptable Debt-to-Income Ratio for FHA Approval?

Let’s look at an example of what mortgage lenders consider an acceptable debt-to-income ratio (DTI) for FHA loans. Imagine we have Borrower A, who first got approved for an FHA loan with an approve/eligible status using an Automated Underwriting System (AUS).

Borrower A has a credit score 550 and a DTI of 43%. However, when Borrower A went to LENDER X, the FHA loan application was denied because the minimum credit score required was 620.

It’s important to note that Gustan Cho Associates can approve Borrower A for an FHA loan without adding extra requirements. To find your own DTI, use the FHA DTI Mortgage Calculator.

USEFUL LINK: FHA Lender Overlays 

What are the DTI Guidelines for FHA Loans According to the Agency?

At Gustan Cho Associates, there are no additional lender-imposed requirements, known as overlays, on FHA loans. Essentially, if a borrower satisfies the minimum FHA guidelines and receives automated approval through the Automated Underwriting System (AUS), their financial standing is considered sound.

For borrowers who got an approve/eligible per automated underwriting system (AUS) findings with at least a 580 credit score, the maximum debt-to-income ratio cap is 46.9% front-end and 56.9% back-end.

For borrowers with under 580 credit scores, the maximum debt-to-income ratio cap is 31% front-end and 43% back-end on FHA loans. Our evaluation relies solely on the automated findings of the AUS, and we refrain from adding any extra lender overlays to FHA loans. Utilize the FHA DTI Mortgage Calculator to assess whether you meet the Department of Housing and Urban Development (HUD) DTI guidelines.

HUD Guidelines on Manual Underwriting on FHA Loans

In the event that the borrower does not receive an automated underwriting system (AUS) approval and instead obtains a refer/eligible status per AUS, Gustan Cho Associates will assess the borrower’s eligibility based on the manual underwriting guidelines for FHA loans.

We will delve into the fundamental FHA debt-to-income (DTI) guidelines in the context of AUS approvals versus Manual Underwriting.

The Department of Veterans Administration (FHA), the federal entity overseeing FHA agency guidelines and the FHA loan program, does not impose a maximum debt-to-income ratio cap. Nevertheless, the majority of lenders typically stipulate that the debt-to-income ratio should not surpass 41% to 45%. What prompts this requirement? Why might a lender disqualify an applicant?
USEFUL LINK: FHA DTI Guidelines

Impact of Collection Accounts on Debt-to-Income Ratio for FHA Loans

According to HUD rules about collection accounts, lenders have to think about 5% of the unpaid balance on those accounts when figuring out the hypothetical debt for the debt-to-income ratio.

If you’re looking for an FHA loan, you might still qualify even if you have outstanding collection or charged-off accounts.

However, remember that underwriters need to include 5% of the unpaid balance of collection accounts as a kind of debt when calculating your debt-to-income ratio.

Are Collections Considered in Debt-to-Income Ratio Calculations for FHA Loans?

One common inquiry we receive at Gustan Cho Associates is whether collections are included in the debt-to-income ratio. The response to this frequently asked question is both YES and NO. The 5% rule applies solely to non-medical outstanding collection accounts with balances exceeding $2,000.

Non-medical and medically charged-off accounts are exceptions to the 5% hypothetical debt calculation rule. Charge off accounts are not charged 5% hypothetical for debt-to-income ratio calculations.

Additionally, according to HUD guidelines on collection accounts, 5% of the outstanding collections must be factored into debt-to-income ratio calculations. Utilizing the FHA DTI Calculator enables you to determine 5% of the outstanding collection balance as part of your debt-to-income ratio.

The Best Mortgage Lenders With No Lender Overlays on FHA Loans

Again, if you meet the minimum agency guidelines of FHA, FHA, USDA, Fannie Mae, and Freddie Mac and get an approve/eligible per automated underwriting system (AUS), you are eligible and qualified. Christy Hembree, a senior mortgage loan originator at Gustan Cho Associates says the following about FHA DTI calculator:

Gustan Cho Associates has a national reputation for not having lender overlays on government and conventional loans. A lender with no lender overlays that just go off agency guidelines will have no problem getting you approved and closed.

However, lenders can have higher lending guidelines and you may not qualify with a particular lender. Gustan Cho Associates has no lender overlays on government and conventional loans. We will cover and discuss lender overlays in the following paragraph. Find out in seconds if you meet the HUD DTI guidelines using the FHA DTI Mortgage Calculator.

DTI Lender Overlays on FHA Loans?

The FHA DTI Mortgage Calculator from Gustan Cho Associates is a helpful tool for anyone looking to get a mortgage. Understanding your debt-to-income ratio is very important before starting the mortgage process. This calculator shows your total monthly debt payments, including your new mortgage payment, and divides that by your monthly gross income. Knowing this ratio is essential when applying for a mortgage.

The Best Most Accurate FHA DTI Mortgage Calculator

Created and launched by Gustan Cho Associates, after months of research and development, the  FHA DTI Mortgage Calculator along with the Best Mortgage Calculator powered by Alex Carlucci, are hands down the two best calculators for everyone to use and navigate to get accurate numbers.

The Best Mortgage Calculator and the FHA DTI Mortgage Calculator are the two most powerful mortgage tools for homebuyers and loan officers during a mortgage transaction.

The Best Mortgage Calculator and the FHA DTI Mortgage Calculator are the nation’s most accurate user-friendly mortgage calculators used by loan officers, and mortgage borrowers. If you have any questions about FHA DTI Mortgage Calculator, please contact us at Gustan Cho Associates at 800-900-8569. Text us for a faster response. Or email us at alex@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

FHA DTI Mortgage Calculator

Follow our FHA DTI mortgage calculator guide to obtain an estimate of your qualifying ratio and learn about FHA limits, student loans, and manual underwriting in 2025. One critical factor when applying for an FHA loan is your debt-to-income ratio (DTI).

This guide walks you through the process and helps you leverage the FHA DTI mortgage calculator, review the lender’s debt classifications, and pinpoint the real FHA limits.

This page has also been updated for FHA debt-to-income calculation and obtaining more clarity, transparent sourcing, and actionable, practical steps.

What are Debt-to-Income Ratios (DTI)? (And Why It Matters to FHA Loans)

DTI or debt-to-income ratios measure the total amount owed against the monthly income earned. FHA has two ratios it looks at:

• Front-end (housing) DTI: For each month, how much gross income is paid out in the mortgage (which includes mortgage insurance, HOA dues, and the principal), and how much the HOA dues are.
• Back-End (total) DTI: For each month, how much money is spent, including the housing payment and all other debts, and how much gross income is earned.
• For many situations in the FHA context, the FHA ratios of 31% and 43% guide the front and back DTI ratios.
• HUD still allows higher ratios on FHA loans if you have other strong factors or when the AUS (Automated Underwriting System) approval through the FHA TOTAL Scorecard approves the file.

What Are The FHA DTI Limits Now?  

AUS Says Refer Manual Underwriting Limits

• No compensating factors have 31/43.
• One compensating factor is 37/47.
• For two or more compensating factors, 40/50.

AUS (FHA TOTAL Scorecard) Approve/Eligible  

• If the total risk is reasonable, most field approvals typically have 46.9% front-end and 56.9% back-end.
• Offers have tightened, especially lower “overlays,” which are 45-50%. However, overlays are the lenders’ rules, not the FHA’s. Gustan Cho Associates has kept to the DTI guidelines.
• Bottom Line: If a different lender has 45-50%, DTI is likely to be an overlay.
• With a strong AUS approval, 56.9% back DTI is common in the market nowadays.

How to Use Gustan Cho Associates’ FHA DTI Mortgage Calculator (Step-by-Step)  

• Mass every gross income earned in a month.
• These include salaries, bonuses, payment for self-employment (as per regulations), alimony or child support (if it is a qualifying income), and any other income received, which are verified.
• Review the housing payments and come up with an estimate.
• These may include Principal, Interest, Property Tax, Homeowners Insurance, Mortgage Insurance, and HOA or Condo Dues.
• Review your note, and list your monthly obligations as they appear in the credit report.
• These include Auto obligations, Credit cards (minimums), Personal Loans, Student Loans (as described below), Installment Payments, and Alimony or Child Support Paid.

Calculate Debt-to-Income Ratios

• Front-end – PITI divided by income.
• Back-end – (PITI and other debts) divided by income.
• Review your result with the result metrics for the manual underwrite levels or AUS (Automated Underwriting System) level benchmarks.
• Aim for a maximum of 56.9% back-end.

Student Loans: The Rule That Moves Your DTI the Most  

HUD permits lenders to use the repayable balance, or 0.5% if a payment is unavailable or is in deferment or forbearance, from the outstanding balance. This is not subject to prior assumptions. This can greatly decrease your DTI.

• Example: $40,000 in student loans.
• If the credit report shows a $120 IBR payment → the lender can use $120.
• If any payment is reported (deferred/forbearance) → 0.5% Times 40,000 dollars = 200 dollars will be counted in the DTI.

How Different Debts Are Counted in the FHA DTI Calculator  

• Credit Cards: Confined to the smallest amount reported.
• Auto/Personal Loans: Recorded as a monthly payment.
• Installments with less than 10 remaining payments: Some lenders may include them, but usually exclude them when the remaining balance is not material.
• Alimony/Child Support Paid: Document the monthly obligation and its payment.
• Affordability/Charge-Off Collections: We have a stringent policy on collections and other charge-offs.
• Some charge-offs will limit other DTI policies on overlays.

The Importance of Manual Underwriting and Total Scorecard AUS

• Manual Underwriting (Refer to AUS): DTI splits: Each applicant will fall under one of these tiers: 31 over 43, 37 over 47, and 40 over 50, which is based on a set of compensating factors, such as positive cash flow.

Some of The Factors That Can Increase Your DTI

• Reserves, post-closing.
• Minimal displacement in payments.
• Household earning potential to have the income-generating Eco for fiscal quarters.
• Over 50, DTI, with verified employment, worthy of trusting a loan based on a burst schedule

These factors assist with manual underwriting with a target of 37 over 47, and 40 over 50.

Narrative Example

Income: Monthly Gross 6,000

Monthly Debts:

• An Auto Loan of $350.
• $75 of Credit.
• Loan for Education, $200.

Max Target PITI + HOA: $1,950

• Front DTI: Monthly target PITI + HOA of $1,950 divided by gross income of $6,000, which is 32.5.
• Back DTI: Monthly income divided by $6,000: $1,950 + $350 + $200, which is 42.9.
• The file is a manual benchmark of 31 over 43 and stands out as a candidate for approval.
• An FHA loan would approve the borrower even with larger PITI ratios.

Simple Ways to Manage FHA DTI Effectively-Detailed, Practical Steps

• Pay off the balance on the revolving so you can pay less instead of the minimum payment.
• Simplify or term out short-term installment debts.
• Add the co-borrower whose debts are light and who has a reasonable income.
• Review homeowners’ insurance and examine properties with an HOA to help your PITI.
• Consider a larger down payment to decrease the principal and mortgage insurance.
• Complete AUS again after any modifications.
• Even small changes can change a “Refer” decision to “Approve” or “Approve/Eligible.”

Overlays as Compared to Other Rules of FHA: Why GCA Can Frequently Say “Yes”

Most lenders impose internal overlays and cap FHA DTI ratios at 43-50% even if AUS would accept higher. At GCA, we do not apply overlays to HUD guidelines. We fight to close it if we get a TOTAL Scorecard of Approve/Eligible.

Updates

• Experience:  Real-life underwriting case studies, current ratios, and student-loan treatment that match current approvals.
• Expertise: FHA guidance and industry manuals contain manual-underwrite tiers and compensating-factor criteria.
• Authoritativeness: Referring to the FHA TOTAL Scorecard and the policy pages of some recognized lenders explains why some banks would say no, and we can qualify you.
• Trustworthiness: Straightforward calculations are accompanied by calculated steps, simple terminology, and clear annotations that allow you to corroborate the information.

Pro Tip

If you’re nearing your DTI limit, ask us to run AUS and examine student-loan documentation. Getting a correct $0–IBR entry or the 0.5% rule can sometimes tip the scales from no to clear to close.

• FHA DTI Mortgage Calculator Inputs: If This Is Your First Time Buying: What is included as income, what debts count, and how much monthly taxes and insurance change each month?
• FHA DTI Mortgage Calculator With Student Loans (IBR, Deferment, SAVE): For IBR payments, use the IBR payment in your IBR, if applicable, or otherwise default to 0.5% of the balance.

Manual Underwriting FHA DTI Requirements and Compensating Factors

Manual underwriting DTI is capped 31/43 without compensating factors. Manual underwriting debt-to-income ratios increases to  37/47 with one compensating factor and  40/50 with two compensating factors. Mortgage underwriters have a lot of underwriting discretion on manul underwriting and can exceed HUD’s recommend debt-to-income ratio caps. Reserves, income used not to qualify, and residual income are compensating factors and assist in qualification and approval.

Frequently Asked Questions on FHA DTI Calculator

What DTI Do I Need For FHA Right Now?

• For manual underwriting, the baseline is 31/43 with the possibility of going up to 37/47 or 40/50 with compensating factors.
• An AUS Approve/Eligible lender will likely approve around 56.9% of the DTI’s back-end ratio.
• Due toDuedual lenders wsome individual lenders ill set caps lower than this.

Does HUD Have a Hard DTI Maximum on FHA Loans?  

• The FHA has a limit for AUS approvals, guided by the “under Manual Tier” level.
• Many lenders are willing to approve over 50% back-end whenever AUS accepts the risk.
• 1 or 2 lenders will usually have the upper limit set at 45-50% as their overlay.

How Do Student Loans Affect My FHA DTI?

• Suppose there is no payment reporting, or the loans are deferred. In that case, the FHA utilizes 0.5% of the balance as a baseline.
• Many buyers’ DTI ratios improved as a result.

I Was Denied at 48% DTI. Can I Still Qualify?

• It’s possible.
• That denial likely reflects a lender overlay.
• If AUS approves you, GCA may be able to close with no overlays.
• Take a look and rerun AUS.

What Counts in The FHA DTI Mortgage Calculator Other Than My House Payment?  

• Other debts include monthly credit card payments, auto and personal loans, student loans (per the above rule), paid alimony/child support, and other recurring payments.

Do Medical Collections Or Charge Offs Count Toward DTI?

• Most of the time, they do not have a monthly payment, unless in a plan, but large balances may trigger overlay treatment by some investors.
• We will review line by line.

I am Self Employed. How Do I Get Counted?

• Underwriters apply the net business income (after permissible add-backs) averaged per FHA guidelines.
• AUS can be generous with strong documentation.

What If My Front End DTI Is High But My Back End Is Fine?

• Manual benchmarks care about both.
• AUS may still approve if the total profile is good.
• Build the file and look at MI, taxes, and HOA.

Can The Rate Buy Down Help With My FHA DTI?

• Definitely—lower rate=lower P&I, which lowers both ratios.
• Buyer credits and points can help lower the cost.

How Quickly Can I Verify if I Meet The Requirements?

• We can conduct an AUS and tell you the results the same day.
• We review the manual underwrite tier levels and compensating factors if the AUS refers.

Are You Ready for Your Financial Projections?

• Phone: 800-900-8569
• Complete Your Application: (We will AUS and apply FHA DTI netting with no overlays.)
• Contact: alex@gustancho.com

Gustan Cho Associates focuses on no-overlay FHA approvals, manual underwrites, and complicated student loan scenarios. Suppose the FHA DTI mortgage calculator puts you in line for approval. In that case, we will help realign the ratio in your favor with ideal underwriting.

More FAQs on FHA DTI Mortgage Calculator

What is the Maximum Debt-to-Income Ratio Allowed for an FHA Loan? 

• The maximum debt-to-income ratio allowed for an FHA loan through automated underwriting systems (AUS) is 46.9% for the front-end ratio and 56.9% for the back-end ratio.
• These ratios are crucial for determining eligibility and are easily calculated using the FHA DTI Mortgage Calculator.

Are There Different Debt-to-Income Ratio Limits for Manual Underwriting on FHA Loans?

• Yes, the maximum front-end ratio for manual underwriting on FHA loans is 31%, and the back-end ratio is 43%.
• These ratios may vary with compensating factors:
• 37% front-end and 47% back-end with one compensating factor.
• 40% front-end and 50% back-end with two compensating factors.

What Are The HUD DTI Guidelines for FHA Loans Based on Credit Scores?

• For credit scores of 580 and above, the maximum front-end ratio is 46.9%, and the back-end ratio is 56.9%.
• If the credit score is below 580, the front-end ratio is 31%, and the back-end ratio is 43%.
• Use the FHA DTI Mortgage Calculator to determine your ratios accurately.

What Are The Down Payment Requirements on FHA Loans?

• A 580 credit score is required for a 3.5% down payment, while credit scores below 580 (down to 500) necessitate a 10% down payment.
• The FHA DTI Mortgage Calculator can help assess eligibility based on these requirements.

Is the FHA DTI Mortgage Calculator Useful for Manual Underwriting on FHA Loans?

• Yes, borrowers can use the FHA DTI Mortgage Calculator to calculate front-end and back-end ratios for manual underwriting on FHA loans.
• It’s a valuable tool for accurate calculations without constant communication with loan officers.

Do All Lenders have Uniform FHA DTI Requirements?

• No, lenders may impose different debt-to-income ratio requirements for FHA loans.
• The FHA DTI Mortgage Calculator provides precise estimates, helping borrowers understand their housing payment, including various factors.

Can a Mortgage Application be Approved After Rejection Due to DTI Overlays?

• Yes, some lenders may have additional requirements (overlays) that lead to rejection, but lenders like Gustan Cho Associates can approve borrowers without imposing additional overlays.
• The FHA DTI Mortgage Calculator helps determine eligibility.

Are Collections Considered in Debt-to-Income Ratio Calculations for FHA Loans?

• Yes, HUD guidelines require lenders to factor in 5% of the outstanding balance of non-medical collection accounts with balances exceeding $2,000 in debt-to-income ratio calculations.

What Are DTI Lender Overlays on FHA Loans?

• DTI lender overlays refer to additional requirements imposed by specific lenders.
• Gustan Cho Associates does not have lender overlays on FHA loans, and the FHA DTI Mortgage Calculator can assist in understanding HUD guidelines without additional requirements.

How Accurate is The FHA DTI Mortgage Calculator?

• The FHA DTI Mortgage Calculator, developed by Gustan Cho Associates, is considered the most accurate and user-friendly tool for calculating front-end and back-end debt-to-income ratios.
• It aids both homebuyers and loan officers in the mortgage application process.

This blog about FHA DTI Mortgage Calculator That Tells You the Truth was updated on October 20, 2025.