What is included in the front-end mortgage DTI ratio?
The front-end mortgage DTI ratio is explained in detail in Supplemental Directive 09-01. Generally, the front-end ratio is the ratio of PITIA to monthly gross income. PITIA includes principal, interest, property taxes, all property-related insurance (hazard, flood, earthquake, etc.) and any required homeowners’ association dues or similar assessments which could create a lien on the property, but excludes mortgage insurance premiums. Monthly gross income is the total of the borrower’s and all co-borrowers’ income before any payroll deductions, including base pay, commissions, fees, tips, bonuses, housing allowances, and any other compensation. Alimony and child support are considered only if the borrower chooses to include such income. In some cases, non-borrower household income can be included, at the borrower’s discretion, if said income can be supported by documentation that it has and will continue to be relied upon to support the mortgage payment. If a borrower is relying on inco
