Quick Answer: Most Utah mortgage programs require a debt-to-income (DTI) ratio below 43-50%. FHA loans allow up to 50% DTI, conventional loans up to 45%, and VA loans have no strict cap but generally approve up to 41% without compensating factors. Your DTI is calculated by dividing your total monthly debt payments (including your proposed mortgage) by your gross monthly income. A DTI below 36% gives you the most options and best rates.
DTI Limits by Loan Type
| Loan Type | Front-End (Housing Only) | Back-End (All Debts) |
|---|---|---|
| FHA | 31% (guideline) | 43-50% |
| Conventional | 28% (guideline) | 36-45% |
| VA | No strict limit | 41% (flexible with residual income) |
| USDA | 29% | 41% |
| Jumbo | 28% | 36-43% |
How to Calculate Your DTI
DTI = Total Monthly Debts ÷ Gross Monthly Income × 100
Example: $6,500 gross income, $1,800 proposed mortgage, $350 car payment, $200 student loans, $100 credit card minimums:
DTI = ($1,800 + $350 + $200 + $100) ÷ $6,500 = 37.7%
What Counts as Debt?
- Counted: Proposed mortgage (PITI), car loans, student loans, credit card minimums, personal loans, child support, alimony
- NOT counted: Utilities, groceries, gas, cell phone, insurance (unless already in PITI), subscriptions, 401k contributions
How to Lower Your DTI Before Applying
- Pay off a car loan: Eliminating a $400/month car payment can increase your buying power by $60,000+
- Pay down credit cards: Reducing balances lowers your minimum payments and improves your credit score
- Switch to income-driven student loan repayment: A lower IBR payment = lower DTI
- Add a co-borrower: A spouse or partner's income increases your qualifying amount
Ready to Get Started?
Get a personalized pre-approval or schedule a free consultation with Felix Vivanco.
Felix Vivanco
Senior Mortgage Loan Officer | NMLS #2002977
Felix has helped hundreds of Utah families find the right mortgage. Bilingual in English and Spanish. Based in Lehi, serving all of Utah.