 TITLE: How Can You Reduce Your Debt-to-Income Ratio? CONTENT: What Is Considered a Good DTI?\n------------------------------\nLenders often set their own requirements on DTI, so there is no absolute standard for a good or bad ratio. From a lender's perspective, the lower your DTI, the better. Like good credit, a low DTI ratio helps you secure the best interest rates and terms on a loan. That said, mortgage lenders generally require borrowers to have a back-end DTI of 43% or less to qualify for a mortgage; many lenders prefer a DTI of 36% or less.\nIf you've been told your DTI is too high to qualify for a particular loan—and the tips below don't help you reduce your ratio—consider shopping around. You may find a lender with unconventional loans or different DTI requirements who is willing to work with you, especially if you have good credit. Alternatively, you may need to be flexible on interest rates and fees in order to find a loan that works. If your DTI is 50% or higher, your options may be limited. END