Debt to Income Ratio for Mortgage: What It Is and How to Improve It

So you've found the home of your dreams, you're ready to take the plunge into homeownership, and then your lender throws a term at you that makes your head spin. Sound familiar? Don't worry, you're definitely not alone.

One of the most important numbers in your mortgage journey is your debt to income ratio for mortgage approval, and understanding it could mean the difference between getting the keys to your new home or walking away empty-handed. The good news? It's not nearly as complicated as it sounds.

In this guide, we're going to break everything down in plain, simple language. You'll learn exactly what your debt to income ratio is, how lenders use it to evaluate your application, and most importantly, what practical steps you can take to improve it. Whether you're just starting to think about buying a home or you've already been turned down by a lender, this tutorial will give you the knowledge and confidence to move forward. Let's dive in and make this whole process a lot less intimidating.

What Is Debt to Income Ratio?

Your debt-to-income ratio (DTI) is one of the most important numbers in the mortgage world, yet most first-time buyers have never heard of it until they sit down with a lender. At its core, DTI is a simple percentage. It compares your total monthly debt payments to your gross monthly income, which is your income before taxes are taken out. For example, if you earn $6,000 per month before taxes and your monthly debt payments add up to $2,000, your DTI is 33%. Lenders use this number to decide whether you can realistically take on a mortgage payment without becoming financially overextended.

Here is where a lot of borrowers get tripped up: DTI is calculated using your gross income, not the money that actually lands in your bank account. If you earn $80,000 a year, your gross monthly income is about $6,667. But after federal and state taxes, Social Security, and other withholdings, your take-home pay might be closer to $4,800. Lenders do their math on the $6,667 figure, even though your real budget runs on the $4,800. This gap matters more than most people realize.

DTI is not the same thing as your credit score, and the two measure very different risks. Your credit score reflects how reliably you have paid bills in the past. DTI reflects whether your current income can actually support more debt right now. According to a St. Louis Fed analysis of 30 million mortgage applications, DTI is one of the most consistent denial triggers, and in borderline cases it can outweigh an otherwise solid credit score.

Lenders are paying close attention to DTI right now for good reason. Serious mortgage delinquency, meaning borrowers who are 90 or more days past due, reached 1.09% in Q1 2026, up sharply from just 0.44% in Q1 2023. That kind of trend makes lenders cautious about approving anyone whose debt load leaves little room for unexpected expenses.

It is also worth knowing what DTI does not count. According to Fannie Mae's DTI guidelines, only debts that appear on your credit report are included, things like car loans, student loans, credit card minimum payments, and the proposed mortgage itself. Groceries, utilities, childcare, insurance premiums, and gas are all left out of the calculation entirely, even though those costs directly affect how much money you actually have available each month.

Two Types of DTI: Front-End vs. Back-End

There are actually two separate DTI calculations lenders look at, and understanding the difference between them can save you a lot of confusion during the mortgage process.

Front-End DTI (The Housing Ratio)

Front-end DTI looks at only your proposed housing costs compared to your gross monthly income. This includes your mortgage principal and interest, property taxes, homeowners insurance, and HOA fees if your new home has them. Nothing else gets counted here, just the costs of keeping a roof over your head. Lenders sometimes call this the "housing ratio," and the traditional guideline says it should stay at or below 28%.

Back-End DTI (Your Full Debt Picture)

Back-end DTI is the bigger number, and it is the one lenders care about most. It takes everything in the front-end calculation and adds all your other monthly debt payments on top: credit card minimums, auto loans, student loans, personal loans, alimony, child support, and any co-signed loans you are responsible for. According to mortgage education resources, back-end DTI gives lenders a complete picture of your financial obligations, not just the new mortgage payment.

Here is a simple example. Say your gross monthly income is $6,000. Your proposed housing costs total $1,500, giving you a front-end DTI of 25%. Now add $600 in other monthly debt payments (a car loan, a student loan, and a credit card minimum). Your total monthly debt is now $2,100, pushing your back-end DTI to 35%.

The 28/36 Rule: A Useful Starting Point

You will likely hear about the 28/36 rule as a benchmark: keep front-end DTI under 28% and back-end DTI under 36%. It is a reasonable guideline, but many financial experts consider it outdated. With 30-year fixed mortgage rates sitting above 6.9% and home prices still elevated in most markets, hitting that 28% front-end threshold is genuinely difficult for many buyers today. Most lenders now work with back-end DTIs up to 43%, and some loan programs allow even higher with strong compensating factors. Think of 28/36 as a goal to aim for, not a strict rule that disqualifies you.

How to Calculate Your DTI Step by Step

Now that you understand what DTI is and how front-end and back-end ratios work, let's walk through the actual math. Calculating your DTI is simpler than it sounds, and you only need four steps to get your number.

Step 1: Find Your Gross Monthly Income

Start with your income before taxes and deductions are taken out. This is your gross income, not the amount that lands in your bank account each paycheck. That distinction trips up a lot of first-time buyers, because your take-home pay can be significantly lower than your gross income.

If you earn a salary, divide your annual salary by 12. If you're paid hourly, multiply your hourly rate by your average weekly hours, then multiply by 52 and divide by 12. If you're self-employed, it's a little more involved. Lenders will typically average your last two years of net income from your tax returns to determine a qualifying figure. Keep in mind that business write-offs lower your taxable income, which also lowers the income number lenders use, so self-employed borrowers often need to plan ahead.

Step 2: List Every Minimum Monthly Debt Payment

Next, write down every debt payment that shows up on your credit report. The key word here is "minimum." For credit cards, lenders use the minimum payment listed on your statement, not the full balance you owe. For installment loans like auto loans, student loans, and personal loans, list the actual monthly payment amount.

Also include alimony and child support obligations if applicable, since lenders count those. What you do not include are everyday living expenses like utilities, groceries, gas, subscriptions, or childcare. Only debts reported to the credit bureaus count. The Consumer Financial Protection Bureau confirms this important distinction in its official DTI guidance.

Step 3: Add Your Estimated Mortgage Payment

Add your proposed monthly mortgage payment to the list from Step 2. This should include all five components: principal, interest, property taxes, homeowners insurance, and HOA dues if your home has them. You may see this referred to as PITI (principal, interest, taxes, and insurance). If you skip any of these pieces, your DTI estimate will come out lower than what lenders will actually calculate.

Step 4: Apply the Formula

Divide your total monthly debts by your gross monthly income, then multiply by 100.

(Total Monthly Debts / Gross Monthly Income) x 100 = DTI%

Worked Example

Here is how this plays out with real numbers:

• Gross monthly income: $6,500

• Car payment: $350

• Student loan minimum: $200

• Credit card minimum: $150

• Proposed mortgage payment (PITI + HOA): $1,600

• Total monthly debts: $2,300

$2,300 / $6,500 x 100 = 35.4% back-end DTI

That 35.4% sits in a comfortable range that most lenders view favorably. You can see a full breakdown of what different DTI ranges mean in the next section.

If you would rather skip the manual math, the interactive DTI calculator at can-i-afford-it.org lets you plug in your numbers and get your DTI instantly. It is a fast way to test different scenarios, like what happens to your DTI if you pay off a car loan before applying, or if you increase your down payment to lower your monthly mortgage cost.

What Counts as Debt in Your DTI Calculation

One of the biggest surprises people encounter when applying for a mortgage is discovering which bills actually count toward their DTI and which ones do not. The list is more specific than most people expect.

What Lenders Include in Your DTI

The debts that count are the ones showing up on your credit report. That includes minimum credit card payments, auto loan payments, student loan payments, personal loan payments, installment loans, alimony, and child support. If you have student loans and are buying a house, those payments count even if your loans are currently in deferment (more on that in a moment).

Here is something important to understand: lenders count your minimum payment, not your balance. If you have a $10,000 credit card balance but your minimum payment is $200 per month, only $200 counts toward your DTI calculation. The total balance does not matter for this purpose.

Co-signed loans are another common surprise. If your name is on a family member's car loan or student loan, that monthly payment counts against your DTI, even if you have never made a single payment on it.

What Lenders Leave Out

Plenty of real expenses do not factor in at all. Utilities, groceries, cell phone bills, childcare costs, health insurance premiums, gym memberships, and streaming subscriptions are all excluded because they do not appear on your credit report. Rent is also excluded unless you use a rent-reporting service that adds it to your credit file.

The Student Loan Deferment Rule

If your student loans are paused, do not assume they disappear from your DTI. FHA lenders typically impute a monthly payment equal to 0.5% of your outstanding balance. On a $50,000 loan, that adds $250 per month to your calculated debt, which can push your DTI meaningfully higher even though you owe nothing right now.

DTI Requirements by Loan Type

Not all mortgage loans are created equal, and your DTI ratio will be judged differently depending on which loan program you apply for. Knowing the rules for each loan type can help you figure out which path makes the most sense before you ever talk to a lender.

Conventional Loans

Conventional loans are the most common mortgage type, and most lenders cap your back-end DTI at around 45%. In practice, though, 43% is the threshold most lenders prefer to see. Some borrowers can get approved above 45% through automated underwriting systems when strong compensating factors are present, such as a high credit score, a large down payment, or significant savings in reserve. Think of compensating factors as your way of telling the lender, "Yes, my debt is a little high, but here is why I am still a safe bet." If your DTI is comfortably under 43%, a conventional loan is usually your most cost-effective option because you avoid the government insurance premiums that come with FHA loans.

FHA Loans

FHA loans are a popular choice for first-time buyers, and a big reason why is their flexibility on DTI. The standard FHA guideline starts at 43%, but borrowers can qualify with a back-end DTI of up to approximately 50% when compensating factors apply. A strong credit score or healthy cash reserves can open that door. According to FHA debt-to-income ratio requirements, compensating factors play a significant role in pushing approvals past the baseline threshold. If you are carrying student loans, a car payment, and some credit card debt, FHA may give you more room to work with than a conventional loan would.

VA Loans

VA loans offer the most flexibility of any major loan program. There is no hard DTI cap for eligible veterans and active-duty service members. Instead, lenders apply what is called a residual income test. This test checks whether you have enough money left over each month, after paying all your debts and housing costs, to cover everyday living expenses. The VA loan DTI guidelines note that lenders pay closer attention when DTI exceeds 41%, but strong residual income can still get you approved. For veterans, this program is almost always the most favorable route regardless of where your DTI lands.

Non-QM Loans

Non-Qualified Mortgage loans exist specifically for borrowers who do not fit the traditional mold, including self-employed workers, freelancers, and gig economy earners. According to DTI requirements for mortgages, these loans offer flexible DTI limits that vary by lender, and they allow alternative income documentation like bank statements or asset depletion calculations. The trade-off is cost; Non-QM loans typically carry higher interest rates than conventional or government-backed loans.

Quick Comparison Summary

Here is a simple way to think about which loan fits your situation:

• DTI under 43%: Conventional is usually the smartest and most affordable choice

• DTI between 43% and 50%: FHA is likely your best route, especially with compensating factors

• Eligible veteran or service member: VA is almost always the top option, no matter what your DTI looks like

• Self-employed or non-traditional income: Non-QM may be your only realistic path, just budget for the higher rate

Understanding where your DTI falls before you apply helps you target the right program from the start, saving time and protecting your credit from unnecessary hard inquiries.

What Are Compensating Factors and Why Do They Matter

Sometimes your DTI is a little higher than the standard guidelines allow, but you still have a strong overall financial picture. That is exactly where compensating factors come in. Compensating factors are financial strengths that give lenders confidence a borrower can handle their mortgage payment, even when the DTI number alone might raise a flag. Think of them as evidence that you are more financially stable than your debt ratio suggests on its own.

The Most Common Compensating Factors

Lenders look at several key strengths when evaluating whether a higher DTI is acceptable:

• Cash reserves: Having 3 to 12 months of mortgage payments saved in the bank, beyond what you used for your down payment, is one of the strongest signals of financial stability

• High credit score: A score of 720 or above shows a long track record of paying debts on time, which makes lenders much more comfortable

• Low loan-to-value ratio: Putting down 20% or more reduces the lender's risk significantly, because you have real equity in the home from day one

• Stable long-term employment: Staying in the same field for several years tells lenders your income is reliable and unlikely to disappear suddenly

These factors work best in combination. One strong factor helps, but two or three together can make a meaningful difference in how an underwriter views your application.

A Real-World Example

Consider two borrowers, both with a 48% DTI. The first has a 760 credit score, 12 months of cash reserves, and a 20% down payment. The second has a 620 credit score, no reserves, and a minimal down payment. Both have the same DTI, but their approval odds are very different. The first borrower gives the lender multiple reasons to feel confident; the second borrower gives very few.

What Compensating Factors Cannot Do

It is important to understand that compensating factors are not a guaranteed way around DTI limits. Each loan program and lender sets its own rules about which factors count and how many are required to push past the standard threshold. For borrowers with a high debt-to-income ratio, some lenders may also impose stricter internal standards called overlays, which go beyond the base program guidelines.

If your DTI is borderline, have a direct conversation with your loan officer before assuming approval. Ask specifically which compensating factors apply to your loan program and how many are required at your DTI level. Going in with that information upfront saves time, reduces stress, and helps you prepare the right documentation.

The Student Loan Deferment Problem

Here is something that catches a lot of borrowers off guard: just because your student loans are in deferment and your current monthly payment is $0 does not mean lenders will ignore them. This is one of the most common misconceptions in the mortgage process, and it can derail an application you thought was in great shape.

FHA lenders are required to count deferred student loans in your DTI calculation even when nothing is currently due. They do this by imputing a monthly payment, which means they assign a payment amount even though you are not actually paying one. Under current FHA guidelines, that imputed payment is typically 0.5% of your outstanding loan balance per month. So if you have $40,000 in deferred student loans, FHA underwriting could count $200 per month against your DTI. If your balance is higher or a different percentage is applied, that number climbs quickly toward $400 or more.

The real-world impact is significant. Imagine a borrower with $60,000 in deferred student loans earning $5,500 per month in gross income. At the 0.5% rate, FHA would add $300 per month to their debt column. That single imputed payment pushes their back-end DTI up by roughly 5.5 percentage points before they even factor in a mortgage payment. For someone already sitting close to the maximum DTI threshold, that difference can mean the difference between approval and denial.

It is worth knowing that conventional loan programs handle deferred student loans differently, which is why choosing the right loan program matters so much. Freddie Mac typically uses 0.5% imputation, while Fannie Mae can actually use 1% of the outstanding balance if your credit report shows a $0 payment, making it more punitive than FHA in some cases. VA loans may exclude deferred balances from DTI calculations entirely under certain conditions.

If deferred student loans are inflating your DTI, you have a few practical paths forward:

• Enroll in an income-driven repayment (IDR) plan. Even a small documented payment like $50 per month can replace the imputed percentage figure, which often works in your favor.

• Pay down the loan balance. Since the imputed payment is calculated as a percentage of your balance, reducing what you owe directly lowers the number lenders use.

• Explore non-FHA programs. VA loans, certain conventional products, or non-QM programs may produce a much lower effective DTI impact depending on your situation.

Talking to a mortgage professional before you start home shopping gives you time to choose the right strategy before your DTI is locked into an application.

How Rising Foreclosures Connect to DTI Decisions

The numbers behind rising foreclosures tell a story that every borrower should understand before signing a mortgage. Foreclosure entries jumped 30.6% year over year, climbing from 174,100 in 2024 to 227,360 in 2025. By Q1 2026, another 59,160 borrowers had already entered foreclosure in just three months. That kind of acceleration does not happen randomly. A significant piece of it traces back to how much debt borrowers were carrying when their loans were originally approved.

Here is the core problem. When a lender approves you at or very near your maximum DTI threshold, your budget has almost no wiggle room. A job change, a medical bill, a car repair, or even a small rate adjustment on an adjustable mortgage can tip the entire equation. Suddenly a payment that was technically affordable on paper becomes genuinely impossible in real life. Serious mortgage delinquency has tripled from 0.44% in Q1 2023 to 1.09% in Q1 2026, and much of that stress is concentrated in loan programs that allow higher DTI ratios, like FHA and VA loans. These are not bad loan programs, but they do permit borrowers to carry more debt at origination, which leaves less cushion when life gets complicated.

The practical lesson here is one of the most important in this entire guide. Being approved at 49% DTI is not the same as it being smart to borrow at 49% DTI. Lender approval is a minimum qualification standard, not a personal finance recommendation.

Ask yourself two honest questions before committing to a loan amount. What happens to your ability to make payments if your income drops by 20%? What happens if a new $500 monthly expense appears out of nowhere, like a medical bill or childcare cost? If the answer to either question makes you uncomfortable, your DTI is too high for your actual situation, regardless of what the lender approved. Treat DTI as a genuine affordability test, not just a checkbox to clear on your way to closing.

How to Improve Your DTI Before Applying: A 3 to 12 Month Roadmap

Improving your DTI before applying for a mortgage does not happen overnight, but a focused 3 to 12 month plan can make a real difference in what loan you qualify for and what rate you receive.

3 Months Out: Pay Down Credit Card Balances

The fastest win available to most borrowers is paying down revolving credit card balances. Lenders count your minimum monthly payment toward your DTI, not your total balance, so reducing that minimum payment directly shrinks the numerator of your DTI calculation. If you are carrying a $5,000 balance on a card at 80% utilization, your minimum payment might be around $150 per month. Get that balance under 30% utilization and your minimum payment could drop to $50 or less, immediately improving your reported DTI. Focus on your highest-utilization cards first, since those carry the biggest minimum payments relative to your income.

3 to 6 Months Out: Freeze New Credit Applications

This window is all about doing nothing. Avoid opening new credit cards, financing new furniture, or taking out any new installment loans. Every new debt you add increases your monthly obligations immediately and shows up in your DTI calculation right away. There is also a second risk: each new credit application triggers a hard inquiry, which can temporarily lower your credit score by a few points. A lower score can affect your loan terms even if your DTI looks fine. Stay patient and keep your credit profile as stable as possible.

6 Months Out: Document Your Income Thoroughly

This step is especially important if you are self-employed, freelance, or have variable income. Lenders typically qualify self-employed borrowers by averaging the last two years of tax returns. If your first year showed modest income but your second year was significantly stronger, that average rises and your qualifying income goes up, which pushes your DTI down without you paying off a single debt. Start gathering bank statements, 1099s, and any documentation for side income now. The more clearly you can show consistent, growing income, the better your DTI picture becomes on paper.

9 to 12 Months Out: Eliminate Small Installment Loans

If you have a car loan, personal loan, or any installment debt with only a few months left, consider paying it off entirely. Removing a $150 per month car payment from a $5,000 monthly gross income drops your back-end DTI by 3 full percentage points on its own. That kind of shift can move you from borderline to comfortably within guidelines.

Two More Levers Worth Knowing

If your DTI still feels stubborn after all of the above, you have two additional options. First, adding a qualified co-borrower, such as a spouse or partner, brings their income into the denominator of your DTI calculation. A higher denominator means a lower ratio, sometimes dramatically so. Second, reconsider your loan program before assuming you are disqualified. A DTI of 46% does not pass conventional guidelines, but it falls well within FHA limits, and VA loans have no hard DTI cap at all. Sometimes the right program is the simplest fix of all.

Special Situations: Self-Employed, Gig Workers, and Non-Traditional Income

If you are self-employed, a freelancer, or part of the gig economy, the standard DTI rules we have covered so far apply a little differently to you. The biggest surprise for most non-traditional earners is this: lenders do not look at what you actually brought in. They look at your net income after business deductions as reported on your tax returns. If you earned $120,000 in revenue but wrote off $50,000 in legitimate business expenses, a lender sees $70,000 in qualifying income. That lower number drives up your effective DTI ratio, often to levels that feel disconnected from your actual financial life.

The Two-Year Consistency Rule

Gig workers and freelancers also face a timeline challenge. Lenders typically want to see two full years of consistent self-employment income before they feel comfortable using it to qualify you. One strong year is usually not enough on its own. Even more problematic is a declining income trend. If you earned $90,000 two years ago and $80,000 last year, lenders may average those figures, which pushes your qualifying income lower than either year alone. A downward trend can disqualify borrowers who are still earning healthy incomes.

Non-QM Loans: A Flexible but Costlier Path

Non-Qualifying Mortgages, commonly called Non-QM loans, exist specifically for borrowers who cannot document income through traditional tax returns. These programs may allow lenders to qualify you based on 12 or 24 months of bank statement deposits, 1099 income records, or asset depletion methods that convert your savings into imputed monthly income. Non-QM loans carry more flexible DTI thresholds, but they come with a real trade-off: higher interest rates and fees. Over a 30-year loan, even a half-point rate difference adds up significantly, so model the total long-term cost before assuming Non-QM is your only option.

The CPA Strategy Worth Knowing

If you plan to apply for a mortgage in the next one to two years, talk to a CPA now. Because qualifying income is pulled from your tax returns, strategically reducing business deductions in the year or two before you apply can raise the net income figure lenders use. Your actual earnings do not change, but your qualifying income on paper improves. This one step can meaningfully lower your effective DTI without paying down a single debt.

Frequently Asked Questions About DTI and Mortgages

What is a good DTI for a mortgage?

Most lenders want to see a back-end DTI of 43% or below for conventional loans. If your DTI falls below 36%, lenders generally consider that a strong financial position, and you are more likely to qualify for the best available interest rates and terms. A DTI between 36% and 43% is acceptable for most conventional loans. Once you go above 43%, you may need to look at government-backed programs like FHA or VA, or lean on compensating factors to strengthen your application.

Does DTI use gross or net income?

DTI always uses gross income, which is your earnings before taxes, health insurance deductions, or retirement contributions come out of your paycheck. It does not use your take-home pay. This trips up a lot of first-time buyers because take-home pay is the number people actually live on. For example, if you earn $80,000 per year, your gross monthly income is $6,667, and that is the number that goes into the DTI formula, even if your actual paycheck deposits total $4,800 per month.

What is the maximum DTI for an FHA loan?

FHA loans are the most flexible option for buyers with higher debt loads. Without compensating factors, most FHA lenders prefer to stay at or below 43% to 45%. With strong compensating factors, such as significant cash reserves, a high credit score, or a low loan-to-value ratio, FHA can allow a back-end DTI up to 50%. That ceiling is not automatic, though. Lenders must document and justify approvals above 43%, so having a clean overall financial profile really matters at that level.

Can I get a mortgage with a 50% DTI?

Possibly, but the path is narrow. FHA with compensating factors, VA loans with sufficient residual income, and certain Non-QM products are the most realistic options at 50% DTI. Here is something worth sitting with: at 50% DTI, half of your gross income is already committed to debt payments. Because DTI does not count utilities, groceries, childcare, or insurance, your actual financial breathing room is even tighter than that number suggests. A careful, honest affordability review before applying is essential.

Does DTI include utilities or groceries?

No. DTI only counts debts that appear on your credit report. That includes minimum credit card payments, auto loans, student loans, personal loans, child support, and the proposed mortgage payment. Utilities, grocery bills, childcare costs, insurance premiums, and streaming subscriptions are all left out of the calculation. This means your approved DTI might look manageable on paper while your real monthly budget feels very stretched. Always factor in those unlisted expenses when deciding how much house you can actually afford.

What happens if my DTI is too high?

You have real options. Paying down revolving debt like credit cards is often the fastest way to lower your DTI since it reduces your minimum monthly payment obligations. Increasing your documented gross income through a raise, bonus, or verified side income also helps. Adding a co-borrower brings their income into the calculation, which can lower the combined DTI significantly. You can also explore loan programs with more flexible DTI limits, such as FHA or VA. If none of those options work right now, delaying your application by six to twelve months while executing a focused debt paydown plan is a smart, practical move that can open up significantly better loan terms.

Next Steps: Calculate Your DTI and Start Planning

Now is the best time to put everything you have learned into action. Head over to can-i-afford-it.org and use the free DTI calculator to plug in your actual income and debt numbers. It gives you both your front-end and back-end DTI instantly, so you know exactly where you stand before talking to a lender.

From there, your next move depends on your result. If your DTI comes in above 43%, flip back to the improvement roadmap section of this article and map out a realistic 3 to 12 month plan. Even paying off one car loan or one credit card can shift your ratio enough to open new doors. If your DTI is already below 43%, use the home affordability calculator on the same site to estimate how much house you can realistically qualify for at today's rates.

Either way, consider getting a mortgage pre-qualification soon. It costs nothing and tells you which loan programs you currently fit, whether conventional, FHA, VA, or another option, and whether your compensating factors like credit score or savings give you extra flexibility.

Finally, bookmark this page. Your DTI is not a fixed number. It changes every time you pay off a debt, get a raise, or take on a new loan. Revisiting your calculation after each financial change keeps your homebuying plan accurate and moving forward.

Conclusion

Your debt to income ratio doesn't have to be a roadblock on your path to homeownership. Here's what to keep in mind as you move forward:

• Your DTI ratio is a critical factor lenders use to evaluate your mortgage application

• A lower ratio significantly improves your approval odds and loan terms

• Paying down existing debt and increasing your income are your two most powerful tools for improvement

• Small, consistent steps taken today can put you in a much stronger position tomorrow

Now it's time to take action. Start by calculating your current DTI ratio, then identify one or two debts you can aggressively pay down over the next few months. Your dream home is closer than you think. With the right knowledge and a clear plan, you have everything you need to walk through that front door with confidence.