U.S. Mortgage Index

Front-end DTI

Also called Front-end ratio

Definition

Front-end DTI is a debt-to-income ratio that counts only the proposed housing payment divided by gross monthly income. It is narrower than back-end DTI.

In plain English

Front-end DTI, sometimes called the front-end ratio or housing ratio, looks at the housing payment alone. Other debts stay out of this figure. Back-end DTI adds those other debts. Neither figure is an approval rule on this page.

Technical definition

CFPB’s debt-ratio heading is the official consumer definition of DTI. Front-end DTI is the housing-only form of that ratio.

Why it matters

A file can look fine on front-end DTI and still be high on back-end DTI if other debts are large.

Example

Alex’s front-end ratio uses only the proposed mortgage payment plus required housing items the lender counts, divided by gross monthly income. A car payment appears only in the back-end figure.

Sources reviewed