FHA debt-to-income ratio is a measure of how much of your monthly income is spent on debt payments. Lenders use this ratio to assess your ability to repay a mortgage loan. To calculate your FHA debt-to-income ratio, add up all of your monthly debt payments, including your mortgage payment (if you have one), car payments, student loans, credit card payments, and any other debts. Then, divide that number by your gross monthly income. The resulting percentage is your debt-to-income ratio.
FHA loans have a maximum debt-to-income ratio limit of 50%. This means that if your debt-to-income ratio is 50% or less, you may be eligible for an FHA loan. However, some lenders may have stricter requirements, so it’s important to check with the lender before applying for a loan.