How do I calculate my debt-to-income (DTI) ratio for mortgage approval in Idaho?

@jeanie 

To calculate your debt-to-income (DTI) ratio for mortgage approval in Idaho, follow these steps:

1. Determine your monthly gross income: This includes all sources of income before deductions, such as wages, salaries, bonuses, commissions, rental income, and any other stable sources of income.
2. Calculate your monthly debt payments: Include all your monthly debt obligations, such as credit card payments, car loans, student loans, personal loans, alimony, child support, and other outstanding debts.
3. Add up your proposed mortgage payment: This includes the principal, interest, property taxes, homeowners insurance, and any mortgage insurance premiums if applicable.
4. Divide your total monthly debt payments by your monthly gross income. DTI Ratio = (Total Monthly Debt Payments + Proposed Mortgage Payment) / Monthly Gross Income
5. Multiply the result by 100 to convert it into a percentage.

For example, if your total monthly debt payments (excluding a mortgage) are $1,000 and your proposed mortgage payment is $1,500, with a monthly gross income of $6,000:

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    DTI Ratio = ($1,000 + $1,500) / $6,000
                  = 0.4167

    DTI Ratio (as a percentage) = 0.4167 * 100
                                            = 41.67%

In Idaho, lenders generally require a DTI ratio of 43% or less for mortgage approval. However, different lenders may have slightly different requirements, so it's best to check with the specific lender you are planning to work with for their DTI guidelines.

@jeanie 

To get your debt-to-income (DTI) ratio for mortgage approval in Idaho, use the steps below:

1. Find your gross monthly income: This includes all income before taxes and deductions.
2. Calculate your total monthly debts: Include all monthly debt obligations like car loans, credit card bills, student loans, etc.
3. Add the estimated monthly mortgage payment: This should cover principal, interest, property taxes, homeowner's insurance, and any mortgage insurance.
4. Add up all your monthly debts and the estimated mortgage payment.
5. Divide the total from step 4 by your gross monthly income.
6. Multiply the result by 100 to get your DTI as a percentage.

For instance, if your total monthly debts (excluding the mortgage) are $1,000, the estimated mortgage payment is $1,500, and your gross monthly income is $6,000:

1. DTI Ratio = ($1,000 + $1,500) / $6,000 = 0.4167
2. DTI Ratio as a percentage = 0.4167 * 100 = 41.67%

Lenders in Idaho usually tend to require a DTI of 43% or less for mortgage approval. However, this can differ between lenders, so it's best to verify with the lender you are considering working with to know their specific criteria.