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  • Writer's pictureJosh Taylor

The number ONE reason people don't qualify for a mortgage.

Let's dive into the top reason why some folks miss out on a mortgage: the DTI, aka debt-to-income ratio.


When you're applying for a mortgage, lenders take a good look at how much you're spending each month on credit compared to what you're earning.

They'll tally up ALL your monthly debts – think car payments, student loans, credit cards, personal loans, even co-signed loans – and check out the minimum you're shelling out monthly, AKA your "monthly debt obligations." Then, they'll divide that by your gross income (before taxes and deductions).


Here's a straightforward example: If your monthly mortgage costs $3000, your car payment is $500, and other debts sum up to $500 per month, your total monthly debt obligation would be $4000. If you make $6000 per month, your DTI would be 66%.

Now, lender DTI requirements vary, but you'll often find them wanting it below 45%, with some aiming for the 30s.


Keep that in mind!

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