Job stability: Long tenure in the same field reduces perceived risk.
Residual income: VA loans use residual income calculations, which can allow higher DTIs for borrowers with income left over after all expenses.
At Redmond Mortgage, we work with borrowers across Houston and Bibb counties who have DTIs above 43%. The key is matching you with the right program and documenting any compensating factors that strengthen your file.
Not every bill affects your DTI. Lenders only count recurring, scheduled debt payments:
Car loans and leases
Student loans (even if deferred — lenders use either the actual payment or 0.5% to 1% of the balance)
Credit card minimum monthly payments
Personal loans
Child support or alimony obligations
Other mortgages or timeshare payments
What does NOT count: utilities, cell phone bills, car insurance, health insurance, groceries, subscriptions, or rent (if you are replacing it with the new mortgage).
If your DTI is pushing the limit, here are strategies that work:
Pay off small debts. Eliminating a $75 credit card minimum or a $150 personal loan can make a meaningful difference.
Pay down credit cards. Your minimum payment is based on your balance. Lower the balance, lower the minimum.
Avoid new debt. Do not finance a car, furniture, or appliances before applying for a mortgage.
Increase your income. A documented raise, bonus structure, or side income that has been stable for 2+ years can help.
Co-borrow with a spouse or family member. Adding their income to the application lowers the combined DTI.
Choose a lower-priced home. A smaller mortgage payment directly reduces your front-end and back-end DTI.
Property taxes in Central Georgia vary significantly by county. Houston County property taxes are roughly 1% to 1.2% of assessed value annually. Bibb County is similar. Peach and Laurens counties may be slightly lower. Because property taxes are included in your monthly mortgage payment through escrow, a higher-tax home increases your DTI.
Homeowner's insurance in Georgia is also a factor. Due to storm and hail risk in Central Georgia, premiums can run higher than the national average — often $1,000 to $1,500 per year for a standard policy. We factor this into our pre-approval calculations so there are no surprises.
Not sure where your DTI stands? We will review your income, debts, and target purchase price to give you an exact number — and show you which loan programs you qualify for today. No guesswork, just real numbers.
A DTI below 36% is considered ideal. Between 36% and 43% is acceptable for most programs. Above 43%, you will need a strong file or a flexible program like FHA or VA.
No. Your current rent is not counted in DTI because it will be replaced by the mortgage. However, if you are keeping your current home as a rental and buying a second property, the existing mortgage or rent payment on the first home will count.
Yes, with an FHA loan or a conventional loan with strong compensating factors. We have successfully closed loans for Central Georgia buyers with 50% DTI when they had excellent credit, stable employment, and reserves.
Yes, unfortunately. Even if your student loans are in deferment or forbearance, lenders must count a payment. For conventional loans, they typically use 0.5% to 1% of the outstanding balance. For FHA, they may use the actual payment if it is documented, or 0.5% of the balance.
In community property states, yes — but Georgia is not a community property state. If your spouse is not on the loan, their debt generally does not count toward your DTI. However, their income also cannot be used. If you are buying in a community property state (like Texas or California), the rules are different.
The fastest way is to pay off credit cards or small installment loans to eliminate their minimum payments from the calculation. Even a few hundred dollars in reduced monthly obligations can drop your DTI by several percentage points.
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