Getting a mortgage when you have debt

Updated November 8, 2026

Having debt doesn't stop you from getting a mortgage. What matters is how big your monthly debt payments are next to your income, and how you've handled them.

Debt-to-income ratio (DTI)

Lenders add up your monthly debt payments, plus the new house payment, and divide by your gross monthly income.

Example: $6,000 a month in income, a $1,800 house payment and $500 in other payments gives a DTI of 38%.

Typical upper limits:

• Conventional loans: up to 45%, and up to 50% when automated underwriting approves it
• FHA loans: often around 43%, higher with strong compensating factors
• VA loans: 41% is the guideline, but VA also looks at the income left over after bills

Check yours with our debt-to-income calculator. Or see how much house you can afford with the debts you have.

What counts

• Counted: the minimum payment on credit cards, car and student loan payments, personal loans, child support and alimony.
• Not counted: utilities, phone bills, insurance (other than for the home) and everyday living costs.
• Student loans in deferment still count. Lenders use either a set percentage of the balance or your income-driven payment, depending on the loan type.

Before you apply

• Pay down card balances. It lowers your DTI and usually raises your credit score, which can earn a better rate.
• Don't open new credit or finance a car while you're shopping for a home.
• Don't close old cards. Closing them can lower your score.
• Pay off a loan with only a few payments left. It can come off your DTI entirely.

If your debts are too high to qualify yet, start with a plan to get out of debt, then come back to buying.