Ideal Debt Income Ratio

Guest 0.10 Dollars($)

What is the ideal debt to income ratio. Mine is coming 33%....is it alarming and with this percentage will I face problems in getting a new loan.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Adlas,

The ideal debt-to-income ratio should not exceed 36% of your gross monthly income. And yours is coming 33% which is absolutely within the range. So I suppose you won't face any problem in getting a loan.

blue · Posted: Tue Jul 31, 2007 4:47 pm Post subject:

Hi Adlas,

Welcome to Mortgagefit discussion board.

If it is up to 36% then it is alright and you should not face problems with approval. A 28/36 ratio is considered good where 28% is percentage of gross income used for housing related expenses and 36% means percentage of gross income used for housing and recurring debt payments. But other factors are also to be considered like your income, credit history among others.

All these factors will work together in determination of your chances in getting a mortgage. Only dti will not be the primary factor on which lenders will base their decision on whether to approve your loan request or not.

Read more about dti from - How debt to income ratio is related to mortgage

Do let me know if you have any other questions.

Thanks
Blue

Guest 0.10 Dollars($)

dti of 33% looks ok to qualify for a mortgage but your credit should also be in good shape, ie, no lates/derogatory marks on report.

Guest 0.10 Dollars($)

33% looks good. Lenders generally see whether your debt to income ratio is between 20% and 39% or not. So, your 33% debt to income ratio is good enough to qualify a new loan. Smile

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