Financing
DTI (Debt-to-Income)
Personal monthly debt obligations ÷ personal gross monthly income.
Conventional residential lenders cap DTI around 43–50% to approve a loan.
Why DTI (Debt-to-Income) matters
DTI can constrain conventional financing as a portfolio grows. Some DSCR programs use property coverage instead of personal DTI as the primary ratio, but they still apply borrower, credit, reserve, property, and program-specific requirements.
Related terms
DSCR (Debt Service Coverage Ratio)
Net Operating Income ÷ mortgage payment. Measures whether the property's income comfortably covers d…
LTV (Loan-to-Value)
Loan amount divided by the lender's eligible value basis. Investment-property cash-out limits vary b…
Interest Rate
Annual mortgage rate. Pricing varies by occupancy, program, borrower, property, leverage, points, le…
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