Mortgage readiness · Condo and co-op review
Measure the debt behind the buying budget.
Calculate front-end housing expense and back-end recurring debt against gross income—the ratios lenders and many New York buildings examine when evaluating a purchase.
Debt-to-income calculator
Calculate front-end and back-end DTI.
Enter housing costs, recurring monthly debts and gross income. Use the result as a planning estimate; the lender and building will apply their own definitions, documentation and thresholds.
Read the ratio correctly
Housing debt and total debt answer different questions.
DTI is a screening measure—not the whole purchase decision. Cash to close, credit, post-closing liquidity, loan structure and building standards still matter.
Housing obligations
Compare the proposed mortgage or rent, property taxes, insurance and condo common charges or co-op maintenance with gross income.
All recurring debt
Add credit cards, vehicle payments, student loans and other required recurring obligations to the housing total.
Lender and building review
A lender, condominium or co-op may calculate income and liabilities differently and may apply a more conservative threshold.
Frequently asked questions
Debt-to-income questions, answered.
What is the debt-to-income ratio?
DTI compares required recurring monthly debt payments with gross monthly income. Divide the included monthly obligations by gross monthly income and express the result as a percentage.
What is the difference between front-end and back-end DTI?
Front-end DTI generally measures proposed housing expenses. Back-end DTI includes housing plus other recurring debt such as credit cards, vehicle payments and student loans.
Is this the same as a rent-to-income ratio?
No. Rent-to-income compares rent with income. Debt-to-income includes a broader set of housing and non-housing obligations and is commonly used in mortgage underwriting.
Does the calculator determine mortgage or co-op approval?
No. Lenders and buildings review supporting documents, credit, assets, reserves, loan terms and their own calculation rules before making a decision.
Plan beyond the ratio
Build the purchase around cash flow, liquidity and the property.
Debt capacity
Debt-to-income is a screening ratio—not a complete measure of financial strength.
Lenders and co-op boards may look at recurring debt relative to income, but they can also weigh liquidity, credit, income stability, housing costs and the specific property.
Use the income that can be documented.
Salary, bonus, self-employment and investment income may be treated differently depending on the lender or building.
Focus on recurring obligations.
Installment loans, revolving debt, support obligations and other required monthly payments can reduce borrowing capacity.
The new home becomes part of the ratio.
Mortgage, maintenance or common charges and property taxes where applicable influence the post-purchase debt burden.
Boards can apply standards beyond lender underwriting.
A buyer can qualify for a mortgage and still fail a building’s liquidity, debt or post-closing financial expectations.
Strong reserves can matter independently of DTI.
Post-closing assets help demonstrate resilience even when the recurring-income ratio is only one part of the review.
Use the ratio to find pressure points.
Reducing revolving debt, changing purchase price, increasing down payment or choosing a lower-carry property can improve the overall profile.
