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.
How to check DTI (Debt-to-Income) before you rely on it
Total your monthly debt obligations the way a lender would, including the new mortgage, and divide by your gross monthly income. Ask the lender how much of the property's rent it will count toward income and what documentation that requires. If the ratio is near the program's limit, find out before you offer whether a DSCR loan or a different program fits, because the answer changes the rate and the down payment.
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…
Ready to run the DTI (Debt-to-Income) math on a real deal?
Free 60-second analysis with labeled starting assumptions and no signup. Pro calculates your Offer Ceiling: the highest price that still meets your targets under the assumptions shown.
Where DTI (Debt-to-Income) shows up in TrueCap
Financing inputs sit in the analyzer's financing section: the rate can start from FRED's national 30-year benchmark and every term is editable. They drive the monthly payment, DSCR, and cash flow after reserves, so a change here moves the verdict and the Offer Ceiling; the results view names the financing assumptions most likely to change the decision.