Key Takeaways
- A high DTI usually starts in the mid-40s, with lenders viewing ratios near or above 50 percent as higher risk.
- Government-backed FHA and VA loans often approve higher DTIs than conventional loans.
- You can lower your DTI by reducing debt, increasing income, or adjusting the size of your home loan.
Getting a mortgage with a high debt-to-income ratio is possible
Buying a house with a high debt-to-income ratio can feel out of reach, but many borrowers qualify once they understand their options. High DTI lenders look at your full financial picture, not just one number, and several loan programs are built to accommodate higher DTIs. With the right strategy, you can strengthen your loan application and find lenders willing to work with you. Here’s everything you need to know about getting a home loan with a high debt-to-income ratio.
In this article (Skip to...)
- Calculating DTI
- Home loan DTI limits
- Getting a loan with high DTI
- High-DTI mortgage loans
- Lowering your DTI
- FAQ
What is debt-to-income ratio (DTI)?
Your debt-to-income ratio (DTI) is the percentage of your monthly debt payments relative to your gross monthly income. Mortgage lenders use DTI to evaluate your ability to manage a new home loan alongside your current debts. A high DTI means much of your income is already committed, which can make home loan approval harder because lenders view you as carrying less room for a new loan payment.
- Front-end DTI measures housing-related expenses—such as your expected monthly mortgage payment, property taxes, homeowners’ insurance, and HOA dues—in relation to your gross income.
- Back-end DTI includes all recurring debt payments, such as credit cards, auto loans, student loans, and personal loans. This is the ratio most lenders use when evaluating your financial health.
Your DTI doesn’t include monthly bills and everyday costs like groceries or utilities. Instead, it focuses only on regular debt payments that appear on your credit report.
Check your high-DTI loan options. Start here
How to calculate debt-to-income ratio
Calculating your debt-to-income ratio is fairly straightforward:
- Monthly debt payments / monthly gross income = X * 100 = DTI ratio
Example: if your total monthly debt payments are $2,000 and your gross monthly income is $6,000, your DTI would be $2,000 / $6,000 x 100 = 33.33%
Step 1: Sum up your total monthly debt payments, including:
- Credit card payments
- Personal loans
- Student loans
- Auto loans
- Existing mortgage payments (if applicable)
- Other debt obligations (e.g., alimony, child support)
Step 2: Divide this total by your gross monthly income (your income before taxes and other deductions).
Step 3: Multiply the result by 100 to get your DTI percentage.
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What is the maximum DTI ratio for a mortgage?
Generally, lenders prefer a DTI ratio that does not exceed 43% of your monthly income because it indicates that you have a good balance between debt and income, which makes you a less risky borrower. However, the maximum debt-to-income ratio for a mortgage can vary depending on the lender and the type of loan you’re applying for.
Check your high DTI loan options. Start here| Loan type | Typical max DTI | Notes (DTI-specific only) |
| Conventional | 43%–45% (up to 50% in some cases) | Higher DTIs are allowed when overall application is strong. |
| FHA | Up to 50% | Some approvals exceed 50% when compensating factors are present. |
| VA | No formal cap | Lenders often approve DTIs above 50% and may go as high as 60%. |
| USDA | Up to 46% | Approvals above this level are uncommon. |
How to get a loan with a high debt-to-income ratio
If you’re worried about getting a mortgage with a high debt-to-income ratio, lenders do deny applications for this reason, but there are steps you can take to improve your chances of approval.
Check your high DTI loan options. Start here1. Try a high DTI mortgage
Some loan programs accept higher DTIs than others, which can help when conventional debt limits keep you from qualifying.
- Conventional loans often cap DTIs around the mid-40s but may stretch to 50% for stronger loan applications.
- FHA loans commonly allow DTIs near or above 50% with compensating factors.
- VA loans have no formal DTI cap and frequently approve borrowers above 50% with sufficient residual income.
- USDA lenders stick to 46%, though some borrowers receive approvals a few points higher.
2. Explore high-DTI mortgage lenders
If a traditional lender denies your application because of a high DTI, alternative options—such as credit unions, online lenders, and community banks—may be more flexible. High DTI lenders often use underwriting models that consider your broader financial picture rather than focusing solely on your ratio, though this flexibility may come with higher rates or closing costs.
Check your loan options. Start here3. Consider a rent-to-own or lease option agreement
A rent-to-own or lease-option agreement allows you to live in the home now and postpone the mortgage application until you’ve had time to lower your DTI. Part of your rent usually goes toward a future down payment, providing a path to ownership while you pay off debts or increase your income.
4. Explore seller financing opportunities
Seller financing can assist borrowers with high DTIs because the seller determines the loan terms instead of a bank. These agreements provide greater flexibility with monthly payments, timing, and qualification criteria. Seller financing can accommodate higher DTIs than standard mortgages, especially when the seller is motivated or the property is difficult to sell.
5. Lower your loan amount
Buying a less expensive home lowers your mortgage amount and reduces your monthly payment, which can help get your DTI within acceptable limits. This strategy may require adjusting your budget or expectations, but it’s one of the quickest ways to meet lender guidelines when your debts are already high.
6. Consider a larger down payment
Putting more money down reduces the amount you need to borrow and lowers your mortgage payment, thereby improving your DTI. A larger down payment can make you a stronger applicant and reduce the lender’s perceived risk, though it may require additional time to save the funds.
7. Buy down your mortgage rate with discount points
Buying discount points reduces your interest rate and monthly mortgage payment, helping you lower your DTI enough to qualify. Some borrowers also consider adjustable-rate mortgages with lower initial rates or negotiate seller credits to fund the rate buydown when the payment needs to fall under a specific DTI limit.
8. Consider adding a co-borrower
Adding a co-borrower or partner with a lower DTI can improve your combined loan application because lenders evaluate both incomes and debts together. This strategy works only when the added borrower strengthens the application, so it’s most effective when their DTI is lower than yours.
9. Opt for a co-signer
A co-signer with better personal finances and credit history can help you qualify more easily by increasing income and lowering the risk perceived by the lender, even if your own DTI is higher than ideal. The co-signer doesn’t need to live in the home but must agree to take responsibility for the loan if you can’t make payments.
10. Debt consolidation refinancing
If you’re refinancing and your DTI is too high, a debt consolidation refinance can help by using loan proceeds to pay off existing debts. The refinance lender issues checks directly to your creditors at closing, immediately reducing your monthly debt obligations and improving your DTI for approval.
Check your cash-out refinancing options. Start here
Mortgage loans for high-debt-to-income ratios
You may still qualify for a mortgage loan with a high debt-to-income ratio through programs that offer more flexible underwriting. Here are the options worth considering.
Check your loan options. Start here
How to lower DTI for mortgage approval
If you’re struggling to get a mortgage with a high debt-to-income ratio, these steps can help you lower your DTI and improve your creditworthiness.
Check out your lending options. Start here- Increase your income by taking on extra hours, freelance work, or a side hustle. Lenders usually want to see a steady income history, typically two years per source. So consistent earnings can help bring your DTI down enough to qualify.
- Restructure your debts through refinancing or by taking out a debt consolidation loan. Options include extending the terms of your student loans, using a personal loan to replace high-interest credit cards, refinancing a secured loan, or transferring balances to a 0% introductory APR card. Keep documentation handy, as updated loan terms may not appear on your credit report right away.
- Pay down the right accounts to lower your monthly debt. Lenders often remove installment loans with fewer than 10 payments remaining from DTI calculations, and reducing credit card balances lowers your minimum payments. Target accounts with the highest payment-to-balance ratios first (often high-interest credit card debt) to achieve the biggest reduction per dollar you pay.
- Postpone financing major purchases, like a car loan, so new debts don’t raise your DTI right before or during the mortgage process.
- Negotiate with creditors or explore debt-relief options if your payments feel unmanageable. Creditors sometimes agree to lower interest rates or extend repayment terms, and debt management programs can help reduce your DTI.
FAQs about getting a mortgage with a high debt-to-income ratio
Verify your home loan eligibility. Start hereA high debt-to-income ratio is generally anything above the mid-40s, since many lenders prefer borrowers near or below 43 percent. Once your ratio reaches the upper-40s or around 50 percent, lenders see it as a sign that too much of your income is already committed to debt. A higher DTI doesn’t guarantee a denial, but it does signal increased lending risk.
A good debt-to-income ratio for most mortgages is around the mid-30 percent range, and many lenders consider anything under about 43 percent comfortably within approval territory. Good credit or healthy savings can help you qualify for a loan even if your DTI is slightly above the preferred range.
Yes, it’s possible to get home loans with a high debt-to-income ratio, depending on the lender and loan program. FHA, VA, and some conventional lenders may accept ratios in the high-40s or low-50s when other parts of your mortgage application are strong. Credit history, stable income, or extra assets can help offset the higher ratio.
Yes, it’s possible to qualify for a home equity loan or HELOC with high DTI, but approval depends on the lender’s DTI limits and your creditworthiness. Some lenders cap DTI around the low-40s, while others may consider a home equity loan with a high DTI if you have good credit or significant home equity. For example, both Navy Federal Credit Union and The Loan Store are reputable high DTI HELOC lenders.
Maximum debt-to-income limits vary by loan type and lender. Conventional loans often fall in the low-to-mid 40s. FHA loans typically allow ratios near 50 percent. VA loans do not set a formal ceiling, and USDA loans are generally in the mid-40s.
Lenders known for working with higher DTIs include Veterans United Home Loans and Navy Federal Credit Union, which are strong choices for VA borrowers who need more flexibility. Guild Mortgage and Rocket Mortgage often approve applicants with DTIs above standard limits through FHA, VA, and HomeReady programs. Pennymac may allow higher DTIs on FHA loans, provided you don’t have bad credit. And Movement Mortgage is often recommended for borrowers with higher DTIs and nontraditional income sources.
Check your eligibility for a high debt-to-income ratio mortgage loan
If you’ve got good credit but high debt-to-income ratio, qualifying for a mortgage may be easier than you think. A quick conversation with a local lender can show you what’s possible and what high DTI mortgage options fit your financial situation. Use the links below to start the process and see whether you can qualify sooner than you expect.
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