• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

What Is A Debt to Income Ratio?

August 24, 2012 by Scott Sheldon

Share on Facebook Share on Twitter Share on LinkedIn Share on Email

A debt income ratio, DTI for short, is the percentage of your gross monthly income that is allocated for reoccurring monthly debt obligations plus your total mortgage payment. The way the math is calculated is by taking any consumer monthly debt obligations on a monthly basis and adding them to the proposed monthly house payment you’re going to be taking on then dividing that by your gross monthly income.

Here is a helpful blog post that talks about how much income you need to a buy a Sonoma County home.

If that number is 45% or lower, you have a good debt to income ratio and you’ll have an easier time securing a home loan. If that percentage is greater than 45%, you’ll want to make sure you have an in-depth conversation with a mortgage lender of your choice about paying off debt to qualify, reducing your purchase price expectations or increasing your down payment. You can get started today to see what your debt to income ratio is by getting prequalified online with Sonoma County Mortgages.

Related Mortgage Advice from Scott Sheldon

  • $72,000 Income: How Much House Payment Can I Qualify For?

    This it depends on all four factors of creating a mortgage, credit, debt, income and…

  • How Much Income Do You Need To Buy A House?

    Home Loans are made against your ability to repay. While the mortgage loan is secured…

  • How Much Will It Cost
    Quick Calculation For Determining House Payment

    As consumer taking out a mortgage loan, computing a house payment can be a time-consuming…

  • Understanding FHA Home Loans

    The two types of loans offered by a local mortgage lenders are conventional loans and…

Filed Under: Purchase Mortgage Loans Questions and Answers Tagged With: buying a house, preapproval to buy a home, qualifying for a mortgage

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window