Debt-to-Income Ratio (DTI)
DTI is a borrower-level underwriting ratio that compares the borrower's total monthly debt obligations to gross monthly income. It is commonly used by lenders and automated underwriting engines to assess repayment capacity and to determine eligibility for specific loan products.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Underwriting
- Property types
- Residential (primary); also used in some small-balance income-property underwriting
In practice
DTI is sensitive to definitional choices (what counts as debt, how income is calculated), so data normalization is core to consistent underwriting decisions. DTI is sensitive to income documentation and debt inclusion rules; this is a data-quality and policy configuration problem for underwriting engines.
Read more in the Knowledge Base
- Debt-to-Income Ratio - How NYC Co-op Boards Calculate and Apply ItBuyers
- Financing Risk Score: How to Underwrite a Buyer's OfferSellers
- Board Risk Mitigation Strategy for Co-op SellersSellers
- Filtering Buyer Pool Depth and Liquidity SilosSellers
- Financial Underwriting for Co-op vs. Condo Acquisitions - Comparative LogicBuyers
Related terms
back-end DTIcompensating factorscredit score (concept)front-end DTIresidual income
Underwriting and Risk Modeling
General information, not legal, tax or financial advice.