Borrower Financial Worksheet
Enter your income and expenses. See your front-end and back-end DTI, how they compare to loan program thresholds, and whether you may qualify for modification.
What is your total household monthly income?
Enter gross (before-tax) monthly amounts. Include all borrowers on the mortgage.
What are your monthly housing costs?
These make up your front-end DTI (housing-only ratio).
What other monthly debt payments do you make?
Include minimum required payments only. Do not include utilities, groceries, or other living expenses.
Why DTI Matters
Your debt-to-income ratio is the single most important number in a loss mitigation application. It tells your servicer two things: whether your current payment is genuinely unaffordable, and whether a modified payment would be sustainable.
Lenders look at two DTI ratios. Your front-end DTI (housing costs divided by gross income) shows how much of your paycheck goes to keeping a roof over your head. Your back-end DTI (all debts divided by gross income) shows total debt burden.
The national mortgage debt service ratio is currently 5.9% — this is the aggregate figure tracked by the American Distress Index. If your personal front-end DTI is significantly higher, you're carrying more housing cost burden than the typical American household.
DTI Thresholds by Loan Program
Different loan programs have different maximum DTI ratios for origination. These same thresholds often guide modification decisions:
| Program | Max Front-End | Max Back-End | Notes |
|---|---|---|---|
| Conventional (QM) | 28% | 43-45% | Qualified Mortgage rule; some exceptions up to 50% |
| FHA | 31% | 43-57% | Up to 57% with compensating factors (credit score, reserves) |
| VA | — | 41%* | No hard cap; uses residual income test instead |
| USDA | 29% | 41% | Manual underwriting allows exceptions with compensating factors |
Frequently Asked Questions
Is my financial information collected or shared?
Your entries may be sent to American Default Research so we can understand where people stop, improve the tool, and help when someone asks to be contacted. We do not sell your information.
What is a debt-to-income ratio?
Your DTI ratio compares your total monthly debt payments to your gross monthly income. Lenders use it to decide whether you can handle more debt. There are two types: front-end DTI (housing costs only) and back-end DTI (all monthly debts including housing).
What DTI do I need for a loan modification?
Most servicers want to see that your current payment is unaffordable (typically back-end DTI above 31%) and that a modified payment would bring your DTI to a sustainable level (usually 25-31% front-end). A HUD-approved housing counselor can help you understand your servicer's specific requirements.
How is DTI different from the national debt service ratio?
Your personal DTI uses your actual income and debts. The national mortgage debt service ratio (currently 5.9%) measures total mortgage payments as a share of total disposable income across all U.S. households. When your personal DTI is significantly higher than the national average, it signals elevated financial stress.
Should I bring this worksheet to my servicer?
Yes. Most servicers require a financial worksheet or income/expense statement as part of a loss mitigation application. This tool calculates the same ratios your servicer will look at. Print it out and bring it along with your hardship letter, pay stubs, bank statements, and tax returns.