DTI Scenario Planner
What if you paid off this debt?
Max home price (excluded debts removed)
$488,849
With $680 in qualifying debts and a 43% back-end DTI cap.
Current DTI (debts only)
6.8%
$680/mo of debt
Max PITI budget
$3,620
to stay under 43% back-end
Max home price
$488,849
$60,000 down
Monthly income
$10,000
$120,000/yr gross
Your debts (3)
Qualifying payment: $75/mo. Reported minimum payment used
Qualifying payment: $380/mo. Standard installment payment
Qualifying payment: $225/mo. Fannie Mae rule: 0.5% of balance (0.5% × $45,000 = $225) used because actual deferred payment is lower
DTI edge cases
Student loans in deferment/forbearance: Fannie Mae uses 0.5% of the balance as the qualifying payment (not the actual $0). This is the single biggest DTI killer for borrowers fresh out of school.
Student loans on IBR/IDR: If your documented payment is > $0, that number counts. If $0, Fannie uses 0.5% of balance.
Installment debt with ≤10 payments left: Lender excludes from DTI if the payment doesn’t materially affect your ability to repay the mortgage. Tag this on the debt and it’ll be excluded automatically.
Co-signed debt: Counts against your DTI unless you can document 12+ months of payments by the other party (cancelled checks, bank statements). Toggle that on the debt to see the effect.
Credit cards: Minimum payment counts (even if you pay in full each month). Pay down balances before applying. Utilization affects credit score AND DTI.