DTI (Debt-to-Income Ratio)

DTI is total monthly debt obligations divided by gross monthly income, expressed as a percentage. Used heavily in consumer mortgages (typically capped at 43% for Qualified Mortgage safe-harbor). In investor lending, DTI is largely irrelevant — business-purpose loans qualify on property cash flow (DSCR) or asset basis rather than personal income. Borrowers coming from owner-occupied financing often expect DTI to drive the file; the underwriting conversation shifts to DSCR, reserves, and credit score banding instead.