• Conventional
  • FHA
  • VA
  • Jumbo/Non Qm

$1,493
*This is an estimate and varies based on credit score.
Total Monthly Payment
Principal and Interest:
1,493
PMI:
277
Property Tax:
333
Homeowners Insurance:
100
HOA/Other:
0
Est Total Payment:

2,203

$1,543
Total Monthly Payment
Principal and Interest:
1,543
PMI:
205
Property Tax:
333
Homeowners Insurance:
100
HOA/Other:
0
Est Total Payment:

2,189




$1,572
Total Monthly Payment
Principal and Interest:
1,572
Property Tax:
333
Homeowners Insurance:
100
HOA/Other:
0
Est Total Payment:

2,148

Total Monthly Payment
Principal and Interest:
1,493
Property Tax:
833
Homeowners Insurance:
100
HOA/Other:
0
Est Total Payment:

4,974

Debt to Income Calculator

Car payment, minimum credit card payments, student loan monthly payments, child support, etc. Not utility bills or rent.
Front Ratio
Back Ratio
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50%
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50%

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

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

The maximum debt-to-income ratio to get an approve/eligible per automated underwriting system (AUS) is 46.9% front-end and 56.9% back-end debt-to-income ratio on FHA loans. The FHA DTI Mortgage Calculator powered by Gustan Cho Associates (GCA Mortgage) has been designed for users to calculate their DTI in seconds. No need to keep on contacting your loan officer whenever there is a change in numbers while shopping for a home. Every mortgage loan program has its own front-end and back-end debt-to-income ratio requirement. With the FHA DTI Mortgage Calculator, users can calculate the debt-to-income ratio for AUS-approved and manual underwriting FHA loans.

HUD DTI Guidelines on FHA Loans

HUD DTI guidelines on FHA loans for borrowers with 580 credit scores and higher, the maximum front-end debt to income ratio is 46.9% front-end and 56.9% back-end. HUD guidelines on debt-to-income ratio requirements mandate a maximum debt-to-income ratio of 31% front-end and 43% back-end for borrowers with under 580 FICO and down to 500 credit scores. on FHA loans. Use the FHA DTI Mortgage Calculator powered by Gustan Cho Associates to calculate your debt-to-income ratio.

HUD DTI Guidelines on Manual Underwriting

Borrowers can use the FHA DTI Mortgage Calculator to calculate your front-end and back-end debt-to-income ratio for FHA manual underwriting. FHA and FHA loans are the only two loan programs that allow manual underwriting. The maximum debt-to-income ratio on FHA manual underwriting is as follows:

  1. 31% front-end and 43% back-end with zero compensating factor
  2. 37% front-end and 47% back-end with one compensating factor
  3. 40% front-end and 50% back-end with two compensating factors

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. 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.

USEFUL LINK: FHA Loans With High DTI

Use The FHA DTI Mortgage Calculator To Check Your DTI

Use The FHA DTI Mortgage Calculator To Check Your DTI

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 GCA Mortgage. In the next paragraph, we will cover the minimum agency mortgage guidelines on debt-to-income ratio caps.

Do All Lenders Have The Same FHA DTI Requirements?

Government and conventional loans have a set maximum DTI cap on their mortgage loan program. Mortgage lenders usually have lower debt-to-income ratio requirements than the agency DTI requirements. The lower the debt-to-income ratio, the better. Low DTI means the borrower has low monthly debts compared to his income. The FHA DTI Mortgage Calculator will get you the most accurate estimated housing payment including the FHA MIP, PMI, Taxes, Insurance, and HOA if applicable.

USEFUL LINK: Mortgage Denial Due To Overlays

Can I Get Approved After Being Denied Due to DTI Overlays?

Most first-time homebuyers believe all mortgage lenders have the same lending requirements on FHA loans since they are government-backed loans. This is not true. All lenders must make sure their borrowers meet the minimum agency guidelines of FHA. However, lenders can have higher requirements on FHA loans. In the next paragraph, we will cover and discuss a case scenario on FHA lenders with overlays on debt-to-income ratios.

What Is An Acceptable DTI For FHA Approval?

Let’s go over a case scenario on what an acceptable debt-to-income ratio for a mortgage approval for lenders is. Let’s say Borrower A is a borrower who got an approve/eligible per AUS on an FHA loan with a 550 credit score and 43% DTI. Borrower A went to LENDER X where he got denied an FHA loan due to not having a 620 credit score. Gustan Cho Associates has no lender overlays and can qualify and approve Borrower A  for an FHA loan. Use the FHA DTI Mortgage Calculator to find out what your DTI is.

USEFUL LINK: FHA Lender Overlays 

What Is The Agency Guidelines on DTI on FHA Loans?

Gustan Cho Associates has no lender overlays on FHA loans. What this means is as long as the borrower meets the minimum FHA guidelines and gets an automated approval per AUS, the borrower is solid. We only go off the automated findings of the automated underwriting system and have zero lender overlays on FHA loans. Use the FHA DTI Mortgage Calculator to see if you meet the HUD DTI guidelines. Use the FHA DTI Mortgage Calculator to see if you meet the HUD DTI guidelines.

HUD Guidelines on Manual Underwriting on FHA Loans

HUD Guidelines on Manual Underwriting on FHA Loans
If the borrower does not get an AUS approval and gets a refer/eligible per AUS, Gustan Cho Associates will see if the borrower qualifies for FHA manual underwriting guidelines. We will discuss the basic FHA DTI guidelines on FHA AUS approvals versus Manual Underwriting. The Department of Veterans Administration (FHA), the federal agency that administers FHA agency guidelines and the FHA loan program, which has no maximum FHA maximum debt to income ratio cap. However, most lenders will require a debt-to-income ratio not to exceed 41% to 45%. Why does this happen? Why will a lender not qualify?

USEFUL LINK: FHA DTI Guidelines

How Do Collection Accounts Affect Debt-To-Income Ratio on FHA Loans

HUD guidelines on collection accounts require lenders to take 5% of unpaid outstanding collection accounts and use it as a hypothetical debt to calculate the debt-to-income ratio. Borrowers can qualify for an FHA loan without needing to pay outstanding collection and charged-off accounts. However, HUD requires mortgage underwriters to use 5% of the unpaid collection account balance to be used as a hypothetical debt.

Do Collections Count Included In Debt-To-Income Ratio Calculations on FHA Loans?

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. 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 powered by Gustan Cho Associates is a powerful tool for borrowers. Debt-to-income ratio is one of the most important factors for borrowers to understand prior to applying for a mortgage. The debt-to-income ratio mortgage calculator allows you to calculate how much your monthly debt payments are, including your proposed new mortgage payment, divided by your monthly gross income.

The Best Most Accurate FHA DTI Mortgage Calculator

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.