Jumbo Loan DTI — California
What DTI ratio do you need for a jumbo loan?
Debt-to-income ratio is one of the key qualifying factors on a jumbo loan. Here’s how it’s calculated and what the limits are.
What is DTI?
Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward monthly debt obligations. DTI = Total monthly debt payments ÷ Gross monthly income.
DTI limits on jumbo loans
| Scenario | Maximum DTI |
|---|---|
| Primary residence, LTV ≤ 80%, loan ≤ $2M | Up to 50% |
| Higher loan amounts or LTV > 80% | 45% |
| LTV > 80% on select programs | 38–40% |
| Second home | 40–50% depending on program |
| Investment property | 38–50% depending on program |
How specific debts are treated
- Student loans: Must be included unless fewer than 10 months remain; 1% of balance used if no payment documented
- Installment loans: Debts with more than 10 months remaining must be counted
- Revolving debt: Minimum payments on all open accounts must be included; paying off revolving debt to qualify is generally not permitted
- Child support/alimony: Payments with more than 10 months remaining must be included
How to improve your DTI
- Pay off installment loans before applying
- Document all eligible income sources
- Avoid taking on new debt before applying
- Consider adding a co-borrower if their income strengthens the application
Most jumbo borrowers qualify in the 38–50% DTI range. If your DTI is above 45%, structuring the application correctly becomes especially important.
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