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GuideA common rule of thumb: keep your total monthly housing payment near 28% of your gross monthly income, and your total debts under about 36% to 43%. But your real number depends on your income, debts, down payment, credit, and rate. Here is how lenders decide, and how to find the figure that actually fits your life.
By Mindy Hay, Senior Loan Officer · NMLS #292224 · Updated September 2026
The main tool lenders use is your debt-to-income ratio (DTI), which compares your monthly debt payments to your gross monthly income. There are two views:
Lower ratios mean you can typically qualify for more. Many programs allow a back-end DTI up to roughly 43%, and some go higher with strong compensating factors.
| Guideline | What it means |
|---|---|
| 28% (front-end) | Housing payment up to about 28% of gross monthly income |
| 36% to 43% (back-end) | All debts (housing + car, cards, student loans) under this range |
Example: on $8,000 a month gross income, 28% is about $2,240 for housing. It is a starting point, not a hard limit.
Lenders look at your full housing payment, often called PITI: Principal, Interest, property Taxes, and homeowners Insurance, plus mortgage insurance if it applies and any HOA dues. Use the payment calculator to estimate yours.
What you can borrow and what feels comfortable are not always the same. It is smart to leave room for savings, emergencies, and the rest of your life. Mindy will help you find a payment you feel good about, not just the biggest number a calculator spits out.
Paying down monthly debts, improving your credit score, adding to your down payment, or choosing a loan with a lower payment can all raise your number. Mindy can show you exactly how each change moves the figure.
Mindy Hay is a senior loan officer with Union Home Mortgage, based in Tigard and serving the greater Portland metro, Southwest Washington, and Arizona. The most accurate way to know your number is a quick pre-approval.
A rule of thumb keeps housing near 28% of gross income and total debts under about 36% to 43%. Your real number depends on income, debts, down payment, credit, and rate. A quick pre-approval with Mindy is the accurate way to know.
Debt-to-income compares your monthly debts to your gross income. Lenders look at housing alone (front-end) and all debts (back-end). Lower is better for qualifying.
Principal, interest, taxes, and insurance (PITI), plus mortgage insurance if applicable and any HOA dues.
Pay down debts, improve credit, add down payment, or choose a lower-payment loan. Mindy can show how each change affects your number.
A quick pre-approval shows you exactly what you can afford, with no pressure.