Your debt-to-income ratio determines mortgage approval (lenders cap at 43% for qualified mortgages per CFPB), auto loan rates, credit card limits, and even rental applications. Over 30% of Americans exceed the 36% recommended threshold when housing debt is included.
This guide covers front-end vs back-end DTI calculation, thresholds by lender type (conventional 43-45%, FHA 50%, VA no hard cap), the 28/36 rule, how DTI affects interest rates, and strategies to lower your ratio with a 90-day improvement plan.
Originally published on WealthWise OS.