Buying & Affordability
What is debt-to-income ratio, and why does it matter?
Mortgage lenders generally compare your monthly debt obligations with your gross monthly income. This is commonly called your debt-to-income ratio, or DTI. It matters because it's one of the key numbers lenders use to decide how much home you may qualify for — and two households earning exactly the same amount can qualify very differently.
By Virginia Fargo, Mortgage Loan Originator, NMLS #299320 · Last reviewed October 13, 2026
An easy example
If your gross monthly income is $10,000 and your qualifying monthly debts are $4,000, then $4,000 ÷ $10,000 = a 40% debt-to-income ratio. The proposed housing expense is added to your existing debts when evaluating overall qualification.
Acceptable DTI varies based on the mortgage program, borrower profile and underwriting findings — this is another reason there isn't one universal answer to "What salary do I need to buy a house in Scottsdale?"
DTI matters even more with jumbo financing
Debt-to-income ratio can become especially important when you're making a smaller down payment on a jumbo loan. Some jumbo programs become more restrictive as loan-to-value increases — a buyer with 10% down and a higher DTI may have fewer financing choices than someone purchasing the same home with a larger down payment or lower monthly debts. That's why I recommend reviewing down payment and DTI together.
Read the original source
Published guide on nohasslehomeloans.com · Sep 16, 2026
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