Pre-Qualification Estimator

Learn how lenders read debt-to-income (DTI) ratios and get an educational estimate of the home price range your income and debts may support.

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Illustrative rate used: 6.875% (a conservative national average, not a quote). An educational estimate of how lenders evaluate pre-qualification using debt-to-income ratios. It is not a pre-qualification, pre-approval, or commitment to lend — only a licensed lender can pre-qualify you.

Next step

Get the free First-Time Buyer Booklet — emailed to you

A plain-English guide you can keep. Optionally, a free educational consultant can answer your questions — they explain how the programs work, and never take applications or quote rates. Educational only, never sold or shared.

Step 1 of 4 · about 30 seconds

Hi, I'm Murphy. I built MortEdu so home loans feel less mysterious. Four quick questions and the full booklet is yours — no sales calls.

Let's get you the full First-Time Buyer Booklet.

Takes about 30 seconds.

Your full name

Where should we send your copy?

We'll email the download link too, so you can grab it again later.

Email address

Which state are you in?

Loan programs and limits vary by state — knowing yours makes the guide more useful.

Your state

Last step — anything else?

Your booklet is on its way by email either way. If it would help, a free educational consultant can answer questions about how the programs work.

MortEdu is an educational resource — not a lender, mortgage broker, or financial advisor. The booklet is for learning only and is not an offer to lend or financial advice. Always consult a licensed professional before making a decision. We don't sell your information. See our Privacy Policy.

Frequently asked questions

What is debt-to-income (DTI)?

DTI compares your monthly debt payments to your gross monthly income. Lenders look at a front-end ratio (housing only) and a back-end ratio (all debts). This estimator shows how those ratios shape the price range a lender might consider — it is educational, not a pre-qualification.

Is this the same as getting pre-qualified?

No. Only a licensed lender can pre-qualify or pre-approve you after reviewing your income, credit, and documentation. This tool just illustrates how the DTI math generally works.

Why do different loan types allow different DTI levels?

Underwriting systems and program rules differ. VA uses a residual-income method with no fixed DTI cap, while conventional and FHA loans use automated-underwriting findings that can stretch DTI with strong compensating factors. Your lender's findings are what actually count.

How loan types differ (DTI, credit & underwriting)

General education — actual eligibility is determined by the lender's automated underwriting findings, not this estimator.

Conventional (Fannie Mae DU/DO, Freddie LPA): credit commonly 620+; DTI typically up to ~45% (up to ~50% with strong compensating factors); 3–5% down (3% for eligible first-time buyers); PMI if under 20% down, cancels at 80%/auto 78%.
FHA (TOTAL Scorecard): 580+ for 3.5% down (500–579 needs 10%); DTI often ~43%+, higher with AUS approval; MIP applies (life-of-loan in most cases).
VA (residual-income method): no fixed DTI cap; flexible credit (lender overlays ~580–620); $0 down; funding fee (financed; exempt with service-connected disability); no PMI.
USDA (GUS): income + rural-area eligibility; DTI ~41% standard, higher with GUS approval; $0 down; guarantee fee.