Guide · Home affordability

DTI caps and home-buying budget

Educational guide · Updated · About 6 min read

Debt-to-income (DTI) samples are simple fractions of gross income. In Nestfigure’s affordability tool they limit how large a housing payment can be before reverse amortization turns that payment into a max loan and home price.

Illustration on $80,000 gross

Monthly gross about $6,666.67:

  • 28% front-end housing max ≈ $1,866.67
  • 36% back-end total debt max ≈ $2,400.00
  • With $400.00 other debts, back-end housing room ≈ $2,000.00
  • Binding housing budget ≈ the smaller of front-end max and back-end housing room

What this is not

Lenders may use different ratios, include or exclude certain debts, and require reserves. Nestfigure does not set or enforce underwriting rules.

Related

Frequently asked questions

What is front-end DTI?

Housing costs divided by gross monthly income. Nestfigure lets you type a sample cap for learning.

What is back-end DTI?

All monthly debt payments divided by gross monthly income—including housing and other debts.

Related tool

Apply sample DTI caps free

See which cap binds your housing budget.

Open affordability calculator

Sources linked above include U.S. government materials (for example CFPB, FDIC, NCUA, BLS, IRS) where noted. Sample math uses only labeled Nestfigure assumptions—not bank quotes, job offers, or personalized advice. Last reviewed: August 9, 2026.

YMYL notice: This site is for education only. It is not financial, tax, or investment advice. Nestfigure is not a bank, credit union, broker, investment adviser, or fiduciary. Product terms, rates, and penalties vary—always read your institution’s disclosures before acting. Calculator results are mathematical estimates, not bank quotes.