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2026 FHA Manual Underwriting Guidelines

FHA DTI Calculator

Calculate your debt-to-income ratio and see if you qualify under FHA manual underwriting guidelines with compensating factors.

Income & Debts
Enter your monthly income and debt obligations
$8,000
$2,400

Principal, Interest, Taxes, Insurance, and HOA

$800

Car payments, credit cards, student loans, etc.

Credit Score & Reserves
620
300500 (Min FHA)580 (3.5% Down)850
$15,000

Liquid assets after down payment and closing costs

✓ 6.3 months of reserves (qualifies as compensating factor)
Compensating Factors
Select the factors that apply to your situation. More factors = higher DTI limits.

At least 3 months of mortgage payments in verified liquid assets

Bank accounts, investments, retirement funds (with penalty consideration)

Documented income increase of at least $100/month or 5%

Must be documented with pay stubs and/or tax returns from past 12 months

Sufficient money remaining after all obligations

Calculated based on family size and geographic region

New payment ≤ $100 or 5% higher than current

Compare proposed PITIA to current rent or mortgage payment

2+ years continuous employment in same field

Stable or increasing income with documented employment verification

Selected: 0 factor(s)

No factors selected - standard DTI limits apply (31%/43%)

Your DTI Results
30%
Front-End DTI
Max: 31%
✓ Pass
40%
Back-End DTI
Max: 43%
✓ Pass

Your DTI Tier: No Compensating Factors

Front: 31%Back: 43%

LTV Requirement

Credit 620: Up to 96.5% LTV
(3.5% minimum down payment)

You May Qualify!

Based on FHA manual underwriting guidelines

Maximum Affordable Payment
No Compensating Factors$2,640
Max housing after existing debts
One Compensating Factor$2,960
Max housing after existing debts
Two+ Compensating Factors$3,200
Max housing after existing debts

Understanding FHA Manual Underwriting DTI Limits

When the Automated Underwriting System (AUS) returns a "Refer" status, your loan file goes to a human underwriter for manual review. This isn't a denial—it's an opportunity for someone to look at the nuances of your financial situation.

Why Manual Underwriting Happens

  • Thin credit file: Limited or no traditional credit history
  • High DTI ratios: Debt exceeds standard automated limits
  • Recent credit events: Bankruptcy, foreclosure, or short sale
  • Non-traditional credit: No FICO score available

The Trade-Off

Manual underwriting requires more documentation. You'll need to provide additional pay stubs, bank statements, and letters of explanation. However, this extra effort can pay off if you have compensating factors that a computer wouldn't consider.

Need Help Understanding Your Options?

Our loan officers specialize in FHA manual underwriting and can help you navigate the process.