Does any one knows how to caluate debt to income ratios???

[haapril]

Does any one know how to caluate debt to income ratio income?? Which one does the lender use. And what is the current ratios that lenders are looking at??? Thank you to all for time and advice.

[ShanetheMortgageMan]

There are two portions to the debt to income ratio (DTI), housing & total. 

Housing is:

Primary Residence Monthly Payment (PITI) ÷ Total Income = Payment-to-Income Ratio

 

Total debt ratio is:

(Primary Residence Monthly Payment (PITI) + Other Liability Payments) ÷ Total Income = Debt-to-Income Ratio 

Standard ratios are 31/43% for FHA, 45% for conventional, 41% for VA, and 29/41 for USDA... in all situations the debt ratio can be exceeded if there are enough compensating factors.