Mortgage DTI Stretch Calculator

DTI ratio caps determine maximum mortgage given income and existing debt.

Monthly income

Existing monthly debts

Max DTI %

Rate %

Term years

Monthly taxes + insurance

Max loan amount

$474,632

Max monthly P&I

$3,000

Current DTI %

0.1%

How the math works

Max debt = income × DTI. Max P&I = max debt − existing − T&I. Max loan = PV of P&I.

$10k × 45% = $4,500 − $850 − $650 = $3,000 max P&I → $474k max loan at 6.5%/30y.

How to Use

Enter monthly income.
Enter existing monthly debts.
Enter max dti %.
Enter rate %.
Enter term years.
Enter monthly taxes + insurance.
Read max loan amount.

Frequently Asked Questions

DTI standards?

Conventional: 45% DTI standard, up to 50% with strong reserves. FHA: 43% standard, up to 56.99% with comp factors. VA: 41% standard, flexible up. USDA: 41/29 (back/front). Jumbo: 36–43% typical. Front-end DTI (housing only): 28–36% target. Back-end (housing + other debt): 36–45% target. Higher DTI = higher rate, more reserves required, more compensating factors. ATR rule (Ability to Repay) sets 43% safe-harbor.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.