The General Rules of Credit & DTI
Credit Scores (FICO)
- 740+: Excellent. Access to the best rates and lowest mortgage insurance.
- 640 - 739: Good. Standard conventional loan territory.
- 580 - 639: Fair. Often better suited for FHA or VA loans. Scores in this range can often benefit from credit repair.
- Below 580: Challenging. May require specialized programs or credit repair before qualifying.
Debt-to-Income (DTI)
DTI is the percentage of your gross monthly income that goes toward paying debts (including your new mortgage).
- Under 43%: Ideal. The standard benchmark for most conventional and government loans.
- 43% - 50%: Very common. Highly likely to be approved with standard credit scores.
- 50% - 57%: FHA territory. Achievable with higher credit scores and strong compensating factors (like cash reserves or residual income).
Comprehensive DTI Calculator
See how your current debts and new mortgage work together
$
Enter the monthly payment you are budgeting for (including taxes and insurance).
$
$
$
$
$
Note: Lenders focus on your "Total DTI" (including the new mortgage). For FHA loans, this can often go up to 57% with strong compensating factors.
Need a Credit Boost?
Fix Errors Faster
If negative items are holding you back, a full-service partner can handle the process for you. CreditLikes — A complete credit restoration partner that handles the heavy lifting for you, $50 discount.
Get Started with Credit Repair
Start improving your score today to qualify for a better mortgage tomorrow.