How much debt can I have and still get a mortgage?

Question

Accepted Answer

It’s normal to have certain debts – like rent and an auto loan. A lender looks at your DTI ratio to confirm that you don’t have so much debt that it prevents you from paying your mortgage. You’ll typically need a DTI ratio of less than 36% to get a mortgage with competitive terms. You still can qualify for a mortgage if your DTI ratio is higher, but you might have to pay a higher interest rate.