DTI stand for Debt To Income ratio. It is calculated by taking your monthly debt and dividing by your monthly income.Many subprime lenders will allow up to a 50% DTI or debt-to-income ratio. A few will even go up to 55%.
Your DTI or debt to income ratio is one of the most important factors in calculating how much of a home you can afford or qualify for. By calculating your DTI a mortgage broker is able to find out how much money you have left or available each month that you can use for a mortgage payment.
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