DTI is the percentage of your gross monthly income that goes toward monthly debt payments. Lenders use it to gauge your ability to take on and repay new debt.

DTI = total monthly debt payments ÷ gross monthly income, expressed as a percentage. For example, $2,000 in debts on $6,000 of income is a 33% DTI.

Many conventional lenders prefer a DTI at or below 43%, though limits vary by loan type. Investors who want to avoid personal-income underwriting often use a DSCR loan, which qualifies on the property's income instead.