Debt-to-Income Ratio (DTI) Explained With Real Florida Examples (2026)

1) What is DTI?

DTI compares:

• Monthly debt payments (minimum payments that show on credit + your new housing payment)

• ÷ Gross monthly income (before taxes)

Most lenders look at a back-end DTI (all debts + housing). Some also look at a front-end DTI (housing only).

2) The simple DTI calculator

Use this:

• DTI % = (Total monthly debt payments ÷ Gross monthly income) × 100

What counts as "monthly debt" in the lender's eyes?

Lenders use the minimum required payment, not what you choose to pay monthly.

• Minimum credit card payments

• Auto loan / lease payments

• Student loan payments (rule depends on loan type and repayment plan)

• Personal loans

• Child support / alimony (if applicable)

• Any other mortgage payments

• New housing payment (principal + interest + taxes + insurance + HOA)

3) Florida reality check: your housing payment is more than the mortgage

In Broward, Miami-Dade, and Palm Beach, buyers often qualify on principal and interest, then get squeezed by the "extras." For a deeper breakdown, review how the true cost of owning a home in South Florida goes far beyond the mortgage payment.

And because insurance can swing your payment by hundreds each month, it helps to understand what Florida buyers should realistically budget for home insurance in 2026.

4) Real Florida DTI examples (2026)

Below are simplified examples to show how DTI works. These examples assume typical underwriting guidelines and do not replace a personalized pre-approval.

Example A: Broward buyer (Miramar / Pembroke Pines)

• Gross monthly income: $7,000 ($84,000/year)

• Monthly debts:

• Auto: $450

• Credit cards: $120

• Student loans: $200

• Estimated housing payment (PITI + HOA): $2,600

• Total monthly debts: $450 + $120 + $200 + $2,600 = $3,370

• DTI: $3,370 ÷ $7,000 = 48.1%

What this means: This buyer is close to the edge. Paying down a car loan, lowering card balances, or choosing a lower HOA/insurance property can make the file feel much safer.

Example B: Miami-Dade buyer (Doral / Miami)

• Gross monthly income: $9,500 ($114,000/year)

• Monthly debts:

• Auto: $525

• Credit cards: $90

• No student loans

• Estimated housing payment (PITI + HOA): $3,300

• Total monthly debts: $525 + $90 + $3,300 = $3,915

• DTI: $3,915 ÷ $9,500 = 41.2%

What this means: This buyer has more breathing room, but Miami-Dade condos and HOA dues can change the outcome quickly. If you're buying a condo, review what's considered a reasonable HOA fee in Florida and which red flags to avoid in 2026.

Example C: Palm Beach buyer (West Palm / inland)

• Gross monthly income: $6,200 ($74,400/year)

• Monthly debts:

• Credit cards: $80

• Student loans: $150

• Estimated housing payment (PITI + HOA): $2,250

• Total monthly debts: $80 + $150 + $2,250 = $2,480

• DTI: $2,480 ÷ $6,200 = 40.0%

What this means: This buyer is in a healthier range. Keeping debts stable and documenting funds cleanly can speed up approval.

5) Three ways buyers lower DTI

1. Pay off or refinance high monthly payments (auto loan is the most common DTI killer).

2. Reduce revolving utilization (it can help credit and sometimes lowers the minimum payment).

3. Shop smarter on total payment (insurance + taxes + HOA), not just price.

It also helps to understand how much cash Florida buyers realistically need to close and maintain healthy reserves in 2026.

If you're getting ready to apply, organizing your paperwork early helps underwriting move faster. Use our 2026 Florida pre-approval document checklist to avoid last-minute conditions.

Next steps

If you want a quick DTI check tied to your real debts and the Florida costs in the neighborhoods you're considering:

• Get pre-approved in minutes: Start your application now

• Explore Florida homebuyer programs: You don't need 20% down

• Book a strategy call: Schedule a call

EZ Funding Group, Inc. NMLS #349022 | Jaime Charouf NMLS #348964 | Equal Housing Lender