What debt-to-income ratio do lenders use?

Debt-to-income ratio compares a borrower's total monthly debt payments, including the new mortgage, against their gross monthly income, and lenders use it as a core qualifying measure. Different loan programs set their own maximum ratio, and a strong credit score or larger down payment can sometimes offset a higher ratio. Lenders typically look at both a housing-only ratio and a total debt ratio that includes credit cards, car payments and student loans. A lender can run a buyer's actual numbers to show which loan programs they qualify for at their current debt level.