Debt-to-Income Ratio in Florida: What Loan Officers Actually Calculate

Your debt-to-income ratio (DTI) is the gatekeeper for how much home you can buy. Florida loan officers use it to decide whether your payment fits. The good news: you can often improve DTI in weeks with the right moves.

What DTI measures (and the simple math)

DTI is the share of your gross monthly income that goes to monthly debts.

Formula: (Total monthly debts ÷ Gross monthly income) × 100

Example: $2,450 debts ÷ $7,000 income = 35% DTI

What counts (and what doesn’t)

Counts toward DTI

• Mortgage payment (PITI + HOA if any)
• Car loans/leases
• Student loans (minimum payment)
• Credit card minimums
• Alimony/child support
• Personal loans/HELOCs

Doesn’t count

• Utilities, phone, internet
• Groceries and daily spend

The targets loan officers use

• Conventional: 43% total (can stretch to ~50% with strong factors)
• FHA: about 43% total (sometimes higher with factors)
• VA: ~41% total, flexible with compensating factors
• Jumbo: often 40–43%, tighter overall

Find your target payment fast

1. Calculate gross monthly income (salary ÷ 12; 24-month average for bonus/commission).
2. Multiply by 0.43 (or your program’s target) to get allowed total debt.
3. Subtract current debts. The remainder is your max PITI+HOA.

Example: $8,000 × 0.43 = $3,440 total; minus $800 debts = ~$2,640 room for housing.

Quick wins to improve DTI

• Pay down or pay off small loans to drop monthly payments
• Reduce card balances (minimums fall as balances fall)
• Refinance or extend student loans to lower required payment
• Pause big purchases (car) until after closing

30-day action plan

Week 1: List debts and minimums; target 1–2 small balances to eliminate.

Week 2: Move cash to pay cards below 30% utilization; request higher limits (no hard pull) to reduce reported minimums.

Week 3: If student loans are heavy, price a refinance or extended term to lower the required payment.

Week 4: Avoid new credit pulls; keep spending flat so reported balances stay low when the lender pulls credit.

DTI vs. credit score

Credit score sets your pricing tier; DTI sets how much you can borrow. You need both: strong score for better pricing, solid DTI for approval amount.

Ask your loan officer

• What’s my current back-end DTI?
• If I pay off one debt, which gives the biggest boost?
• What’s the max housing payment I should target today?
• Are there compensating factors to stretch my DTI?

Bring to the conversation

• Recent pay stubs and returns
• Full debt list with minimums
• Card balances and limits
• Notes on any income changes

Next steps

Want your DTI sized before you shop? Talk with a Florida-licensed loan officer and ask them to map your max payment and the fastest DTI fixes. It’s the quickest path to a confident offer.