Is 14 DTI good?
A 14% DTI is solid, but what’s considered good? Most lenders like to see a DTI of 43% or lower to approve you for a mortgage. Some government-backed loans, like FHA loans, allow DTI ratios as high as 50-57% if you have other strong financial factors (like a high credit score or extra savings). Relative to your income before taxes, your debt is at a manageable level. You most likely have money left over for saving or spending after you ‘ve paid your bills. Lenders generally view a lower DTI as favorable.
What is the 28 DTI rule?
To help prevent borrowers from overextending themselves financially, lenders consider DTI ratios when reviewing applications for mortgage loans. The 28/36 Rule recommends keeping housing costs below 28% of pre-tax income and total debt payments below 36%. The 33/38 rule is a guideline used in mortgage lending that recommends a maximum housing expense-to-income ratio (front-end ratio) of 33% and a maximum total debt-to-income ratio (back-end ratio) of 38%.