US Mortgage DTI Limits: Conventional, FHA and USDA

The pre-approval email says your debt-to-income ratio is too high, and it does not say by how much.

Based on Fannie Mae, HUD, USDA, VA and the CFPB. Lenders can be stricter than the program rules. For all your debt options see the US debt relief hub.

How lenders count it

Fannie Mae adds up your housing payment, installment and revolving debts, lease payments, certain alimony or support payments, other recurring obligations and any net rental loss, then divides by the income of every borrower used to qualify (Fannie Mae). Lenders may use a more conservative method, such as a higher minimum card payment, if they apply it consistently.

The limits, side by side

FHA is shown as housing ratio / total ratio. The FHA numbers come from a 2014 HUD letter (HUD). HUD has since folded that policy into its handbook, so check the current version with your lender. USDA says higher ratios need documented compensating factors (USDA).

A worked example

Our own illustration, not a quote. Gross income is $6,000 a month. The new housing payment is $1,800, a car loan $400, a card minimum $200 and a student loan $250. Total: $2,650, and $2,650 ÷ $6,000 = 44.2%. That is above Fannie Mae’s 36% manual standard, inside its 45% and 50% ceilings, and above FHA’s standard 43%. Pay off the card and the total is $2,450, which is 40.8%.

Where the 43% number came from

The CFPB says 43% was part of the older DTI-based General QM definition. For applications received on or after October 1, 2022 only the price-based definition applies, and it has no DTI test. Lenders must still consider DTI or residual income (CFPB). So 43% is a common habit, not a federal ceiling.

The things you’re probably wondering

Is 43% still the legal DTI limit for a mortgage?

No. The CFPB says the 43% DTI test belongs to the older General QM definition, which does not apply to applications received on or after October 1, 2022. The price-based definition has no DTI test, but lenders must still consider DTI or residual income (CFPB). Lenders and loan programs still set their own limits.

What DTI does Fannie Mae allow?

For manually underwritten loans, the maximum is 36% of stable monthly income, rising to 45% if you meet the credit score and reserve requirements. For loans run through Desktop Underwriter, the maximum is 50% (Fannie Mae).

Does a mortgage lender count my current rent?

Not the way you might expect. Fannie Mae counts the housing payment for the loan you are applying for, plus installment and revolving debts, lease payments, certain support payments and other recurring obligations (Fannie Mae).

Is there a DTI limit for a VA loan?

VA’s own buyer’s guide does not state a DTI cap. It says VA does not set borrowing limits and requires enough residual income after your mortgage and other obligations (VA buyer’s guide). Lenders set their own standards, so ask yours.

Can I get approved above the usual DTI?

Sometimes. Fannie Mae allows up to 50% on automated approvals, FHA manual underwriting allows 40/50 with two compensating factors under HUD’s 2014 letter (HUD), and USDA allows a total of 44% with a waiver and a 680 credit score (USDA). A lender can still say no.

Does paying off a credit card help my DTI?

It removes that minimum payment from the monthly total, so yes. In the illustration above, clearing a $200 card payment drops the ratio from 44.2% to 40.8%. See how to lower your DTI fast and use the debt-to-income ratio calculator.

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• What Is a Good Debt-to-Income Ratio in the US? (2026)
• How to Lower Your Debt-to-Income Ratio Fast (2026)
• What is a Good Credit Score in the US? (2026 Guide)
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