Texas DTI Calculator
Calculate your debt-to-income ratio for buying in Texas. Find out the income needed to qualify for the $310K median home with 1.8% property taxes.
Debt-to-Income Ratio and Buying in Texas
Your debt-to-income ratio (DTI) is one of the most important numbers in the mortgage qualification process. In Texas, where the median home costs $310K and a typical PITI payment (10% down, 6.5%) is $2,545/mo, you would need a gross monthly income of at least $9,089 to keep the front-end DTI (housing costs only) at or below the standard 28% guideline. That translates to an annual salary of roughly $109K.
The back-end DTI — which includes all monthly debts (housing plus car payments, student loans, credit card minimums, and other obligations) — is equally important and is what most lenders focus on. Conventional loans typically require a back-end DTI of 43% or less, while FHA loans may allow up to 50% with compensating factors. If you carry $500/mo in non-housing debts and want to buy the median Texas home, your total monthly obligations would be $3,045, requiring roughly $85K in annual income to stay at 43% DTI.
At Texas's moderate price level, most buyers with stable employment and manageable existing debts can meet DTI requirements for the median-priced home. The key is minimizing non-housing debt before you apply: pay off credit cards if possible, avoid taking on new car loans, and defer large purchases until after closing. Every dollar of monthly debt you eliminate directly increases the mortgage amount you can qualify for. Even if your DTI is borderline, the TDHCA My First Texas Home program (up to 5% dpa grant) can help by reducing the loan size needed.
Use the full DTI calculator tool to enter your actual income and debts and see exactly where you stand. The tool will show both front-end and back-end ratios and tell you the maximum home price you can qualify for based on your specific financial picture — factoring in Texas's 1.8% property tax rate and $4K/yr insurance costs.