Do it Yourself Debt Ratio Worksheet

Estimated Maximum Monthly Housing Expense

Gross Monthly Income:

$

Multiply by Housing Expense to Income Ratios

x (%)

Equals Total (a)s

(a)

Gross Monthly Income: 

$

Multiply by Total Debt to Income Ratios

x (%)

Equals:

$

Subtract Total Monthly Debt Payments

-

Equals Total (b)s

(b)

The lesser of total (a) or total (b) equals estimated maximum housing expense (principle, interest, taxes and insurance. - PITI)

$

Allowable Debt Ratios for Various Loan Types

Variable Conventional FHA VA
Monthly Housing Expense/
Gross Monthly Income		 25-28% 29% Not used for VA Loans
Total Monthly Expenses/Gross Monthly Income 33-36% 41% 41%

* Total Monthly Debt Payments: 

  • For conventional and FHA loans, include all installment payments, (i.e. car loans, etc.) 
  • For conventional loans, include all revolving monthly payments (credit cards, etc.) over 10 months.
  • For FHA loans, include all revolving monthly payments over 6 months. 
    • Also, include payments automatically withdrawn from account.
  •  For VA loans, include all monthly debt payments, installments, and revolving monthly payments over six months