What Debts Count in Your DTI Ratio? Complete List
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Lenders calculate your debt-to-income ratio using the minimum payments on debts that appear on your credit report — not your total monthly expenses. Your $200 electric bill doesn't count, but your $200 car payment does. Knowing what's included (and what's not) helps you estimate your DTI before applying for a mortgage or loan.
Check your DTI with the DTI Calculator.
Debts That COUNT Toward DTI
| Debt Type | What Lenders Use |
|---|---|
| Mortgage/rent | Monthly payment (PITI: principal, interest, taxes, insurance) |
| Car loan | Monthly payment |
| Student loans | Monthly payment (or IBR amount, or 0.5-1% of balance if in deferment) |
| Credit card minimums | Minimum payment shown on statement |
| Personal loans | Monthly payment |
| HELOC/home equity loan | Monthly payment |
| Child support | Court-ordered monthly amount |
| Alimony | Court-ordered monthly amount |
| Auto lease | Monthly lease payment |
| Cosigned loans | Full monthly payment (unless borrower can prove 12 months of payments) |
| 401(k) loans | Monthly repayment amount |
| Medical debt in collections | May count (lender-specific) |
Debts That DON'T Count
| Expense | Why It's Excluded |
|---|---|
| Utilities (electric, gas, water) | Not on credit report |
| Cell phone bill | Not a debt obligation (unless financed phone) |
| Internet/cable | Not on credit report |
| Car insurance | Not a debt |
| Health insurance premiums | Not a debt |
| Subscriptions (Netflix, gym, etc.) | Not on credit report |
| Groceries | Not a debt |
| Gas/transportation | Not a debt |
| Property taxes (if not in mortgage) | Some lenders include, some don't |
| HOA fees | Some lenders include, some don't |
Common DTI Surprises
| Surprise | What Happens |
|---|---|
| Student loan in deferment | Still counts — lender uses 0.5% or 1% of total balance as payment |
| Cosigned loan you don't pay | Counts as YOUR debt unless borrower proves 12 months of payments |
| Authorized user on someone's card | May count — depends on lender and if it shows on your report |
| Buy Now Pay Later (BNPL) | Increasingly showing on credit reports — may count |
| $0 balance credit card | $0 minimum = doesn't add to DTI |
| Business debt in personal name | Counts toward personal DTI |
How Different Loan Types Handle Student Loans
| Loan Type | Student Loan DTI Calculation |
|---|---|
| Conventional (Fannie Mae) | 0.5% of balance if not on IBR, or IBR payment |
| Conventional (Freddie Mac) | 1% of balance or actual payment |
| FHA | 0.5% of balance or actual payment |
| VA | Actual payment or 5% of balance ÷ 12 |
For a $40,000 student loan balance:
- 0.5% method: $200/month counted
- 1% method: $400/month counted
- IBR payment might be $150/month
The method used significantly affects your DTI and borrowing capacity.
How to Lower Your DTI by Removing Debts
| Strategy | Impact |
|---|---|
| Pay off smallest loan | Removes that payment entirely |
| Get cosigner release | Removes cosigned loan from your DTI |
| Show 12 months of payments on cosigned loan | May exclude from DTI (lender-specific) |
| Switch to IBR for student loans | May lower the counted payment amount |
| Pay credit cards below $0 | $0 minimum = $0 toward DTI |
| Pay off car loan | Removes payment, can significantly lower DTI |
Run your numbers with the DTI Calculator to see where you stand.
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