To buy a house, lenders primarily look at two distinct "credit to debt" metrics: your and your Credit Utilization Ratio . While DTI determines how much you can afford to borrow, your credit utilization directly impacts the credit score needed to qualify for the best interest rates. 1. Debt-to-Income (DTI) Ratio
: Your total monthly debt—including the new mortgage, credit cards, car loans, and student loans—should ideally be 36% or less. Maximum Limits by Loan Type : credit to debt ratio to buy a house
: Typically capped at 43%–45%, though some lenders allow up to 50% with high credit scores or large cash reserves. To buy a house, lenders primarily look at
: This is the gold standard for most conventional lenders: This is the percentage of your total available
: Generally allow for higher ratios, often up to 43%, and sometimes as high as 50% or 57% in specific cases.
This is the percentage of your total available revolving credit (like credit cards) that you are currently using. It does not include installment loans like car payments. What Is A Debt-To-Income Ratio For A Mortgage? - Bankrate