FHA DTI ratio requirements (2026 guide)

An FHA loan is a type of government-sponsored mortgage that can be useful option for home buyers who don’t meet conventional loan requirements. FHA loans have looser eligibility criteria because they’re backed by the Federal Housing Administration, which makes them less risky for lenders. So, if your credit score isn’t so great and your debt-to-income ratio (DTI) is on the higher end, you may still qualify for an FHA loan. Let’s take a closer look at what a DTI ratio is, how you can calculate yours, what kind of DTI you’ll need to get an FHA loan.

What is DTI?

Debt-to-income ratio is a figure that reflects how much of your income must go toward paying off debt. It’s reflected as a percentage and is calculated by adding up your monthly payments and dividing that sum by your gross monthly income.

Lenders use your DTI to gauge whether you’ll be able to keep up with your mortgage payments as you repay your loan. If your DTI is too high, there’s a higher likelihood that you could fall behind on your mortgage or even default on the loan. In order to qualify for an FHA loan, your DTI will need to fall under the DTI limits set by the FHA and your lender.

There are two types of DTI - front-end DTI and back-end DTI.

Front-end DTI

Your front-end DTI, also knowing as housing ratio, considers only your debts related to housing. This includes rent or mortgage payment, homeowners insurance, and property taxes.

Back-end DTI (total debt ratio)

Back-end DTI, also known as total debt ratio, considers all of your monthly debt payments. This includes not only housing costs, but also any credit cards, auto loans, student loans, and other types of debt.

FHA DTI ratio requirements

Home buyers are typically advised to follow the 28/36 rule when it comes to front-end and back-end DTI. According to the 28/36 rule, you should avoid spending more than 28% of your income on housing costs and more than 36% of your income on debts. However, FHA loans have looser DTI requirements, allowing for a front-end DTI of up to 31% and back-end DTI of up to 43%. It’s even possible to qualify for an FHA loan with a DTI of up to 50% if you have some compensating factors that boost help prove you can afford the mortgage.

Compensating factors that may allow higher DTI

If your DTI is high, you could still qualify for an FHA loan thanks to certain factors that offset the risk you pose as a borrower. They’re referred to as compensating factors and help prove to the lender that you’ll likely be able to keep up with your mortgage payments. The following are often considered compensating factors: 

• Great credit
• Additional income
• Diversified investments
• Substantial savings

How to calculate your DTI

You can calculate your own DTI to see if you might be eligible for an FHA loan. Here’s how it works.

1. Add up minimum monthly debt payments. This is the minimum amount you owe on your rent or mortgage, credit cards, loans. You do not include living expenses like utilities, car insurance, and groceries.
2. Divide by gross monthly income. Once you have your total monthly debt, you divide that figure by your gross monthly income. That’s the amount of money you earn each month before taxes and deductions are taken out.
3. Convert to a percentage. Move that decimal point over two spaces to the right and you’ve got your DTI ratio.

Back-end DTI example calculation

For example, let’s suppose you earn $6,000 per month before taxes and you have the following monthly minimum debt payments:

• Rent: $1,800
• Car payment: $475
• Credit cards: $500
• Personal loan: $100

Once you add up these debts, you’ll find that your total monthly debt is $2,875. If you divide that number by your gross monthly income of $6,000, you’ll get 0.48. So, your DTI is 48%.

What debts count in FHA DTI?

FHA lenders consider both front-end and back-end DTI when deciding whether to approve your application. Your ability to repay your loan is impacted by both how much of your income your mortgage takes up and how much debt you have overall. Your back-end DTI offers a more comprehensive view of the amount of total debt you’re carrying.

Why debt type matters

The type of debts you carry also makes a difference in how lenders view your DTI. Debt that is secured with collateral - like a mortgage or car loan - is considered less risky because it often comes with lower interest rates. Debt that has a set repayment date is preferable over revolving debt like a credit card - which usually has higher interest rates.

What is my DTI is too high?

If your DTI is too high to be eligible for an FHA loan, here are some steps you can take to get an FHA loan:

• Pay down your debts to reduce your DTI
• Increase your income
• Boost your credit score
• Buy a more affordable home

FAQ about DTI ratio requirements

Here are the answers to some frequently asked questions about the FHA loan DTI requirements.

What is the maximum DTI ratio for an FHA loan?

It’s possible to qualify for an FHA loan with a DTI of up to 43%. If you have certain compensating factors, like great credit and substantial savings, you could qualify for an FHA loan with a DTI as high as 50%.

What is the FHA 75% rule?

The FHA 75% rule is for those who are buying a multiunit property as a rental investment. Under the 75% rule, the FHA will consider 75% of the estimated rental income when determining your eligibility to account for potential vacancies.

Is a 50% debt-to-income ratio too high?

It’s possible to qualify for an FHA loan with a DTI as high as 50%, but you’ll typically need to also have some compensating factors that help prove you can afford to repay the loan.

The bottom line on DTI and FHA loans

Your debt-to-income ratio is a figure that reflects how much debt you have relative to your income and can impact your ability to get a mortgage. You can calculate your DTI by adding up your monthly debt and dividing it by your gross monthly income. FHA loans come with looser eligibility requirements overall, but you’ll still typically need a DTI under 50% to qualify.

Ready to get started with the home buying process? Start the mortgage approval process online with Rocket Mortgage.

Rocket Mortgage is not acting on behalf of FHA or HUD.