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What is a Debt to Income Ratio (DTI) and a Loan to Value Ratio (LTV)?

April 26, 2017debt dti income loan LTV ratio value

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What is a Debt to Income Ratio (DTI) and a Loan to Value Ratio (LTV)?

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Your DTI is a ratio computed by dividing your monthly recurring obligations (i.e. credit card payments, loan payments, etc.) by your gross monthly income. Most lenders require a DTI of less than 45% to qualify for a home loan. For example, you make $3000.00 per month and have monthly obligations totaling $1200; 1200/3000 = 40%.