FDIC Insured — Backed by the full faith and credit of the U.S. Government
Texana Bank Mortgage
(888) 272-8264 Apply Now
Borrower reviewing FHA debt-to-income calculations
FHA DTI Guide

FHA Debt-to-Income

A practical guide for borrowers asking how FHA looks at debt-to-income, what debts may count, and why the ratio is only one part of the mortgage approval.

Review My FHA DTI → FHA Loan Overview →
NMLS #407536Subject to credit approvalCall (888) 272-8264
VA IRRRLFHA StreamlineConventional RefiHELOCJumbo RefiReverse Mortgage2nd MortgageVA LoanFHA LoanConventionalJumboUSDADown Payment AssistanceConstructionManufactured HomeLand LoanRenovationDSCRFix & FlipBank StatementAsset DepletionP&L1099BridgePortfolioITINForeign NationalVA IRRRLFHA StreamlineConventional RefiHELOCJumbo RefiReverse Mortgage2nd MortgageVA LoanFHA LoanConventionalJumboUSDADown Payment AssistanceConstructionManufactured HomeLand LoanRenovationDSCRFix & FlipBank StatementAsset DepletionP&L1099BridgePortfolioITINForeign National
DTI Basics

FHA debt-to-income is not just one number.

FHA underwriting looks at the mortgage payment compared with effective income and the total fixed payments compared with effective income. In plain English, that means the housing payment and the whole monthly debt picture both matter.

HUD Handbook 4000.1 includes manual underwriting ratio guidance, but automated underwriting, compensating factors, lender overlays, credit profile, reserves, and property details can all change how a file is reviewed.

Bottom line: a high DTI is not automatically dead, and a low DTI is not automatically approved. The debts, income quality, credit, assets, and underwriting path all matter.
HUD Ratio Rules

Manual underwriting has ratio boxes, but the full file still matters.

31 / 43 baseline

HUD manual underwriting guidance includes 31 percent housing-to-income and 43 percent total debt-to-income ratios as a common baseline.

Higher ratios

HUD manual underwriting guidance includes higher ratio buckets for certain 580+ credit profiles when acceptable compensating factors are documented.

Compensating factors

Cash reserves, residual income, minimal payment shock, and other documented strengths may matter when a file stretches beyond baseline ratio limits.

What Underwriting Checks

What still matters beyond the DTI percentage.

A DTI ratio can look clean or ugly depending on how the income and debts were calculated. The review needs the details, not just a borrower-estimated percentage.

Income quality

Hourly, salary, overtime, bonus, commission, self-employment, rental income, and part-time income can each have different documentation and averaging rules.

Debt calculation

Student loans, authorized user accounts, installment debt, revolving debt, alimony, child support, payment plans, and debts paid by others may need specific treatment.

Payment shock and reserves

A borrower moving from low rent to a much higher mortgage payment is different from a borrower with reserves and a history of making a similar housing payment.

Common Traps

Do not get tripped up by half-true FHA advice.

"My DTI is just debts divided by income"

Close, but not enough. The lender has to use guideline-eligible income and guideline-required debts, not rough borrower math.

"Automated approval means ratios do not matter"

No. Automated findings still depend on accurate income, debts, assets, and property data. Bad inputs create bad approvals.

"Paying off debt always fixes it"

Sometimes, but not always. Funds to close, reserves, source of funds, credit utilization, and timing can make the strategy better or worse.

Source Notes

Where this guidance comes from.

This page is based on HUD Handbook 4000.1, Single Family Housing Policy Handbook, current HUD update listed August 12, 2026. Key sections reviewed include manual underwriting approvable ratio requirements and compensating factor guidance.

The article is informational, not a loan approval, legal advice, credit counseling, APR disclosure, or commitment to lend. Final eligibility depends on the complete file and underwriting.

Source: HUD Single Family Housing Policy Handbook 4000.1

Want your FHA debt-to-income checked?

Bring income, debts, assets, credit range, property taxes, insurance, HOA dues, and the purchase or refinance goal. We will review the real ratio before you count on it.

Review My FHA DTI → Call (888) 272-8264
Reviews

What borrowers say about Texana Bank

Real reviews from real borrowers, pulled live from our Google Business Profile.

5.0★★★★★
110 Google reviewsRead all on Google →
Gary McDay

I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected. They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals. If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!

Kent Sisco

Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future

Andrea Ferrell

Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!! Andrea

Clay Ragsdale

Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime. I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional. Respectfully, Clay

Belvia Lynn

My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.

Joseph Hardman

Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.

Marsha Kessler-Bradshaw

I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!

Peter Jenkins

My situation had its difficulties. Justin was confident and persistent through the process and we the got the result

Dale Samuel

Mark has been very professional and has been very respectful to my wife and myself. Mark has shown that genuine human qualities and really worked with us and for us. This actually been a pleasure to get to know Mark.

James Fields

Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank! JFields

Rose Stone-Stewart

Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.

Mitchell Morris

Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.

Ronald Bylsma

Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!

Dejan Jajcevic

I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me

James Reaves

Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.

Lesli Hopkins

Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately

Bobby Strickland

Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.

Abraham Sanchez

Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.