Can You Get a Mortgage with a 600 Credit Score? Navigating Low Credit Mortgage Options
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Can You Get a Mortgage with a 600 Credit Score? Navigating Low Credit Mortgage Options
Alright, let's cut to the chase, because I know why you're here. You've looked at your credit score, seen that 600 staring back at you, and felt that familiar knot of dread in your stomach. Maybe you've even had a well-meaning friend or family member tell you, "Forget about it, you need at least a 700 to buy a house these days." And now you're wondering, is it even worth trying? Is homeownership just a pipe dream with a score like that?
Let me tell you something right off the bat, as someone who's been in this game for a long time, helping countless folks navigate the often-murky waters of mortgage lending: that 600 credit score, while certainly not ideal, is not a death sentence for your homeownership dreams. It makes things challenging, absolutely. It means you'll need to be savvier, more persistent, and more informed than someone waltzing in with an 800. But impossible? No, not by a long shot. This isn't some magic trick; it's about understanding the system, knowing your options, and being prepared to put in the work. Think of me as your guide through this labyrinth. We're going to break down exactly what that 600 score means, what doors it closes, and more importantly, what doors it can still open for you. We'll explore the specific loan programs designed for folks like you, and I’ll arm you with the strategies and insider tips you need to turn that "maybe" into a definitive "yes." So, take a deep breath. Let's dig in.
Understanding Credit Scores and Mortgage Eligibility
Before we dive into the nitty-gritty of specific loan programs, it's absolutely crucial that we're all on the same page about what a credit score truly represents in the eyes of a mortgage lender. It’s not just some arbitrary number; it’s a snapshot, a numerical summary, of your financial reliability. It tells a story about your past borrowing behavior, your payment history, and your overall debt management skills. And frankly, for lenders, it’s one of the quickest, most standardized ways they have to assess risk. The higher the score, the lower the perceived risk, and generally, the more favorable the terms they’re willing to offer. The lower the score, well, you guessed it – higher risk, tighter scrutiny, and potentially less attractive terms. But understanding why that 600 score matters and how it fits into the broader picture is your first step toward overcoming its limitations.
What a 600 Credit Score Signifies in Lending
Let's talk about that 600. Where does it actually sit on the grand scale of creditworthiness? Most lenders, when they talk about credit scores, are primarily looking at FICO scores, though VantageScore is also gaining traction. Both scales typically range from 300 to 850. On either of these scales, a 600 credit score generally falls into the "Fair" category. It's not "Poor," which is usually below 580, but it's certainly not "Good" (typically 670-739), "Very Good" (740-799), or "Exceptional" (800+).
So, what does "Fair" mean to a lender? It means you're generally perceived as a "subprime" borrower. Now, don't let that term scare you or make you feel less-than. "Subprime" isn't a judgment of character; it's a classification used by financial institutions to denote borrowers who may have had some past credit challenges, possess a limited credit history, or whose financial profile presents a higher likelihood of default compared to prime borrowers. Lenders see that 600 and they think, "Okay, this person has likely missed a payment or two, maybe carried high balances on their credit cards, or perhaps they haven't had credit for very long." It signals caution, prompting them to dig deeper and look for mitigating factors.
This perception isn't just about skepticism; it's about financial models and risk assessment. Lenders use complex algorithms to predict the probability of a borrower defaulting on a loan. A 600 score suggests a statistically higher chance of missed payments compared to, say, a 720 score. Because of this elevated risk, lenders will often compensate by offering less favorable loan terms, such as higher interest rates or requiring a larger down payment. It’s their way of balancing the increased risk they're taking on. This is the reality we're working with, and understanding it is the first step to strategizing around it. It’s not personal, it’s just business, and our goal is to show them you’re a better bet than their models initially suggest.
The Basics of Mortgage Credit Score Requirements
When it comes to mortgages, there isn't a single, universal credit score requirement that applies to every loan type or every lender. It's more of a spectrum, with different programs having different thresholds, and even within those programs, individual lenders can set their own "overlays" – stricter requirements than the minimums set by the loan program itself. This is a critical piece of information because it means that if one lender says no, another might say yes, simply because their internal policies are different. It's why you can't just take the first "no" as gospel.
Generally speaking, conventional loans – those not backed by a government agency and typically conforming to Fannie Mae and Freddie Mac guidelines – are the toughest nut to crack with a lower score. For these, you're usually looking at a minimum credit score requirement of 620, sometimes even 640. And let me tell you, even at that 620, you're barely scraping by. You'll likely face significantly higher interest rates and potentially higher private mortgage insurance (PMI) costs compared to someone with a score in the mid-700s. The algorithms used by Fannie and Freddie are pretty unforgiving when it comes to lower scores on conventional products, seeing them as too risky without government backing.
On the other hand, government-backed loans are your real friends when you're working with a 600 score. We're talking about FHA loans, VA loans, and USDA loans. These programs were specifically designed to make homeownership more accessible, and part of that mission involves being more lenient on credit scores. For instance, FHA loans are famously flexible, often allowing scores as low as 580 with a modest 3.5% down payment, and sometimes even down to 500 if you can put 10% down. VA loans, for eligible veterans, often have no official minimum credit score requirement from the VA itself, though most lenders will still look for something in the mid-500s or low 600s as an internal guideline. USDA loans, aimed at rural development, typically look for 620, but they also have manual underwriting options that can sometimes go lower. Understanding these distinctions is paramount, because it immediately shifts your focus from the uphill battle of conventional loans to the more navigable terrain of government-insured options.
Beyond the Score: Other Factors Lenders Consider
Now, here's a crucial point that many first-time homebuyers, especially those with lower credit scores, often overlook: your credit score is not the only factor lenders consider. It's a big one, for sure, a major piece of the puzzle, but it's just one piece. Think of it like a job application: your GPA is important, but so are your work experience, your references, and how you present yourself in an interview. In the mortgage world, lenders are looking at your entire financial picture, trying to get a holistic sense of your ability and willingness to repay a substantial loan over many years.
One of the most critical factors beyond your credit score is your debt-to-income (DTI) ratio. This is a percentage that compares your total monthly debt payments (including the new proposed mortgage payment, credit cards, car loans, student loans, etc.) to your gross monthly income. Lenders typically look at two DTI ratios: the "front-end" ratio (housing costs only) and the "back-end" ratio (all debts). Generally, lenders prefer to see your total DTI below 43%, though some programs, particularly FHA, can stretch this a bit higher, sometimes into the low 50s, especially if you have strong compensating factors like significant cash reserves. A low DTI tells a lender that even if your credit history has a few bumps, you're not overextended and have enough disposable income to comfortably make your mortgage payments. It’s a powerful mitigant for a lower credit score, showing financial discipline in the present.
Then there's your employment history. Lenders want stability. They typically look for at least two years of consistent employment in the same field, or at least without significant gaps. If you've been bouncing between jobs every six months, that raises a red flag, regardless of your credit score. They want to see a reliable income stream. Your down payment is another huge factor. A larger down payment reduces the amount of money you need to borrow, which in turn reduces the lender's risk. If you're coming to the table with 10% or 20% down, even with a 600 score, that signals strong commitment and financial discipline, making you a much more attractive borrower. Finally, your assets and cash reserves play a significant role. Having a healthy savings account, even after your down payment and closing costs, shows that you have a buffer for unexpected expenses or job loss. It reassures lenders that you won't be living paycheck to paycheck, struggling to make your mortgage payment if a minor financial hiccup occurs. These factors, combined with your credit score, paint the full picture. Ignoring them would be a grave mistake.
The Reality: Securing a Mortgage with a 600 Credit Score
Okay, we've laid the groundwork. We understand what a 600 score means and that it's just one piece of the puzzle. Now, let's confront the elephant in the room directly: can you actually get a mortgage with that score? And if so, what kind of experience should you realistically anticipate? It’s important to manage expectations here, because while it’s possible, it’s not going to be the same smooth sailing as someone with pristine credit. You'll likely encounter some headwinds, but with the right knowledge and preparation, these headwinds can be navigated.
The Direct Answer: Is It Possible?
Yes, absolutely. Let me say that again, unequivocally: Yes, it is often possible to get a mortgage with a 600 credit score. Don't let anyone tell you otherwise without first asking about your full financial picture. The key word here is "often," because it's not a guaranteed path, nor is it universally easy. It requires specific strategies, a deep dive into your financial situation, and a willingness to explore options beyond the conventional. I've seen it happen countless times, for clients from all walks of life.
The possibility hinges almost entirely on the type of loan you pursue and the strength of those other mitigating factors we just discussed – your DTI, employment history, down payment, and reserves. While a 600 score will likely close the door on most conventional loan products, it opens the door wide for several government-backed programs that are specifically designed to assist borrowers who might not have perfect credit. These programs understand that life happens, that credit scores can fluctuate, and that a single number doesn't always reflect a person's true capacity or desire to be a responsible homeowner. They offer a lifeline, a pathway for those who might otherwise be shut out of the housing market.
It's a common misconception that lenders only want the "perfect" borrower. While every lender certainly prefers a low-risk client, the market is vast, and there are programs and institutions specifically catering to a broader spectrum of credit profiles. The challenge isn't finding a lender who might work with you; it's finding the right lender who specializes in these types of situations and understands the nuances of underwriting loans for borrowers with fair credit. This often means looking beyond the big banks and seeking out mortgage brokers or smaller, more specialized lenders who have greater flexibility or specific expertise in government-insured loans. Your journey might require a bit more legwork, but the destination of homeownership is very much within reach.
The Trade-offs: What to Expect with a Lower Score
Alright, let's be realistic. While getting a mortgage with a 600 credit score is possible, it's not without its trade-offs. Think of it like buying a car with a slightly dinged fender versus a pristine one. You can still get the car, but you might pay a bit more or have fewer options. The same principle applies here, and understanding these trade-offs upfront will help you manage your expectations and prepare for what's ahead.
The most significant trade-off you'll face is almost certainly a higher interest rate. Lenders price their loans based on risk. A 600 credit score signals a higher risk of default, and to compensate for that increased risk, they'll charge you a higher interest rate. This isn't punitive; it's just how risk-based pricing works in finance. Over the life of a 30-year mortgage, even a half-percentage point difference in interest can add up to tens of thousands of dollars. It's a tough pill to swallow, but it's the cost of entry for many with fair credit. The good news is that these higher rates aren't necessarily permanent; once you've built up equity and improved your credit score, you can often refinance into a lower rate down the road.
Beyond interest rates, you might also encounter increased fees. This could manifest as higher origination fees, discount points (where you pay upfront to "buy down" the interest rate a bit, though this might not always be advisable with a low score and limited funds), or even specific lender fees designed for higher-risk borrowers. Similarly, you might face stricter terms overall. This could mean a more rigorous underwriting process, more paperwork requests, or less flexibility on things like closing dates. Lenders are simply being more cautious, dotted every 'i' and crossed every 't'. They want to ensure every aspect of your financial profile is thoroughly vetted.
Finally, and this is especially true for FHA loans with lower scores, you might be required to make a larger down payment than someone with excellent credit. While FHA technically allows 3.5% down for scores 580 and above, some lenders, due to their internal "overlays," might require 5% or even 10% for a 600 score. This isn't a hard and fast rule, but it's something to be prepared for. A larger down payment acts as a significant mitigating factor for your credit score, reducing the loan-to-value (LTV) ratio and therefore the lender's exposure to risk. It shows commitment and bolsters your application, but it also means you need to save more. These trade-offs are the reality, but they are manageable realities, especially when you know what to expect.
Mortgage Programs Tailored for Lower Credit Scores
Now that we've established that a 600 credit score isn't a deal-breaker, let's talk about your actual allies in this journey. Not all mortgage programs are created equal, and some are specifically designed with borrowers like you in mind. These government-backed options are often your best bet, offering more lenient credit requirements, lower down payments, and sometimes even assistance programs. Understanding these specific programs is absolutely essential, as they represent your clearest path to homeownership. Don’t waste time trying to force a square peg into a round hole with conventional loans when these tailored options are available.
FHA Loans: The Most Common Option
When people ask me about getting a mortgage with a lower credit score, my mind almost immediately jumps to FHA loans. These are hands down the most common and often the most accessible option for borrowers with credit scores in the "Fair" range, including that 600. FHA loans are insured by the Federal Housing Administration, which means the government backs the loan, reducing the risk for lenders. This government backing is precisely why lenders are more willing to approve borrowers with less-than-perfect credit. It's a fantastic program designed to promote homeownership for a wider range of Americans, and it truly shines for those who might not qualify for conventional financing.
The FHA's credit score requirements are notoriously flexible. Officially, the FHA allows for a credit score as low as 580 with a minimal 3.5% down payment. If your score is between 500 and 579, you might still qualify, but you'd need a larger down payment, typically 10%. So, with your 600 score, you comfortably fall into that 580+ category, making you eligible for the attractive 3.5% down payment. This is a huge advantage, as saving up a 20% down payment can be a monumental task for many families. However, it's important to remember what we discussed earlier about lender "overlays." While the FHA sets these minimums, individual lenders can, and often do, impose their own stricter requirements. Many lenders prefer to see a 620 credit score even for FHA loans, but there are plenty who will work with a 600, especially if you have other strong compensating factors like a low DTI or significant cash reserves. You just have to find them, which is where a good mortgage broker comes in handy.
Now, there's a trade-off with FHA loans that you absolutely need to be aware of: Mortgage Insurance Premiums (MIP). Because the FHA is insuring a higher-risk loan, they charge both an upfront MIP (which can be financed into your loan) and an annual MIP (paid monthly as part of your mortgage payment). Unlike Private Mortgage Insurance (PMI) on conventional loans, which can eventually be canceled once you reach 20% equity, FHA's annual MIP is typically for the life of the loan if you put down less than 10%. This means an added cost every month for the entire loan term, unless you eventually refinance into a conventional loan. While it's an extra expense, it's often a small price to pay for the opportunity to become a homeowner when other doors are closed. It's a critical component of the FHA's risk mitigation strategy, and understanding it is key to budgeting your monthly housing costs accurately.
VA Loans: A Lifeline for Veterans (No Minimum Score Often)
For our nation's heroes, the VA loan program is nothing short of a lifesaver, especially for those navigating the mortgage landscape with a 600 credit score. These loans are backed by the U.S. Department of Veterans Affairs and are exclusively available to eligible service members, veterans, and surviving spouses. The benefits of a VA loan are truly unparalleled in the mortgage world, making them an incredibly powerful tool for those who qualify. If you or your spouse have served, this should be your absolute first stop.
The most striking feature of VA loans, particularly relevant to your situation, is that the VA itself does not impose a minimum credit score requirement. Let that sink in for a moment. The government agency backing these loans explicitly states there's no floor. This is a monumental difference from FHA or conventional loans. While the VA doesn't set a minimum, individual lenders do have their own internal policies, known as overlays. Most lenders will still look for a score in the mid-500s to low 600s, often around 620, but I have personally seen lenders go lower, especially with strong compensating factors. The fact that the VA doesn't mandate a minimum means that lenders have much more flexibility to manually underwrite these loans and consider the borrower's overall financial picture, rather than relying solely on a FICO score.
Instead of rigidly focusing on a credit score, VA lenders place a significant emphasis on two other crucial metrics: Debt-to-Income (DTI) ratio and residual income. The DTI ratio, as we discussed, compares your total monthly debts to your gross monthly income. While the VA doesn't have a strict DTI limit, they do look at it closely. More importantly, they focus on residual income, which is the amount of discretionary income you have left over each month after all major expenses (debts, taxes, utilities, etc.) are paid. The VA has specific residual income guidelines based on family size and region, ensuring that veterans have enough money left over to maintain a reasonable quality of life after their mortgage payment. A strong residual income, even with a 600 credit score, can be a powerful indicator to a lender that you are a responsible borrower capable of handling the monthly payment. Furthermore, VA loans offer 100% financing, meaning no down payment is required, and they do not require monthly mortgage insurance (though there is a one-time VA funding fee, which can be waived for veterans with service-connected disabilities). These benefits, combined with the flexible credit score approach, make VA loans an absolute game-changer for eligible borrowers with fair credit.
USDA Loans: Rural Development Opportunities
Often overlooked, the USDA loan program can be another fantastic avenue for homebuyers with lower credit scores, particularly if you're looking to purchase a home in a qualifying rural or suburban area. These loans are backed by the U.S. Department of Agriculture and are designed to promote homeownership and economic development in less densely populated regions. The "rural" part often surprises people; it's not just farms and fields. Many suburban areas on the outskirts of major cities still qualify, so it's always worth checking the USDA's eligibility map.
Eligibility for USDA loans hinges on a few key factors: the property must be in a designated rural area, and borrowers must meet specific income limits for their area (typically low-to-moderate income). When it comes to credit scores, the USDA generally looks for a score of 620 or higher for streamlined processing. However, and this is where it gets interesting for those with a 600 score, the USDA program also allows for manual underwriting. This means that if your credit score is below 620, a lender can still review your application by hand, looking beyond the automated score to your full financial history. They'll scrutinize your payment history for the past 12-24 months, your DTI, your employment stability, and your cash reserves. If you can demonstrate a consistent payment history for other debts, despite the lower score, manual underwriting might allow you to qualify.
One of the most attractive features of USDA loans, similar to VA loans, is that they typically require no down payment. Yes, 100% financing is possible, which can be an enormous relief for borrowers who struggle to save a large sum for a down payment. Like FHA loans, USDA loans do come with mortgage insurance – both an upfront guarantee fee (which can be financed) and an annual fee (paid monthly). While this is an added cost, the benefit of no down payment and flexible credit requirements often outweighs it. The key is to work with a lender who is experienced in USDA loans and willing to engage in manual underwriting for scores below their typical automated approval thresholds. Don't let the "rural" designation deter you; many areas you might consider suburban actually qualify, making this a powerful and often underutilized option for homeownership with a 600 credit score.
Non-QM Loans: When Traditional Paths Fail
Sometimes, despite your best efforts, the traditional paths – FHA, VA, USDA, and certainly conventional – just don't quite fit your unique financial situation. Maybe your DTI is too high for government programs, or you're self-employed with inconsistent income that doesn't fit standard guidelines, or perhaps you've had a recent financial event that's dropped your score below even the FHA's minimums. This is where Non-QM (Non-Qualified Mortgage) loans can enter the picture. These are a different breed entirely, operating outside the strict rules set by government agencies and typically not conforming to Fannie Mae or Freddie Mac standards.
Non-QM loans are offered by specialized lenders who are willing to take on higher risk in exchange for higher returns. They are designed for unique financial situations that "don't fit the box" of traditional mortgages. This flexibility means they can be a lifeline when all other doors seem closed. For instance, some Non-QM loans cater specifically to self-employed borrowers using bank statements instead of tax returns to verify income (a "bank statement loan"). Others might be for investors, or for those with recent bankruptcies or foreclosures that would disqualify them from government-backed options. Critically for our discussion, some Non-QM products are designed for borrowers with lower credit scores, offering more flexible underwriting criteria than conventional or even FHA loans.
However, it's essential to approach Non-QM loans with a clear understanding of the trade-offs. Because they carry higher risk for the lender, they almost always come with significantly higher interest rates and increased fees compared to traditional mortgages. The down payment requirements can also be higher, sometimes 10%, 20%, or even more. The underwriting process, while flexible, can also be quite thorough, as lenders are assessing risk without the comfort of government backing. It's not a program for the faint of heart, or for those who have other, more affordable options available. Think of Non-QM as a last resort, a specialized tool for very specific circumstances. If you find yourself in a situation where traditional loans are simply not an option, and you're willing to pay a premium for the flexibility, then exploring Non-QM lenders might be a viable, albeit more expensive, path to homeownership. Always ensure you're working with a reputable Non-QM lender, as this segment of the market can sometimes attract less scrupulous players.
Conventional Loan Challenges and Exceptions
Let's talk about conventional loans for a moment, just to be crystal clear. As an expert in this field, I have to be honest with you: getting a conventional loan with a 600 credit score is going to be an extremely challenging, if not impossible, endeavor through most mainstream lenders. The vast majority of conventional loans are designed to be sold to government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac, and these entities have strict minimum credit score requirements, typically starting at 620, and often preferring 640 or higher for competitive rates. A 600 score simply doesn't meet their automated underwriting system's (AUS) minimum thresholds for risk assessment without government insurance.
When your score is at 600, the AUS, which is the computer system that evaluates your eligibility, will almost certainly render an "ineligible" or "refer with caution" decision for a conventional loan. This isn't because the loan officer doesn't like you; it's because the system, based on decades of data, flags your score as too high a risk for an uninsured loan. The higher the risk, the less likely the loan is to be sold on the secondary market, which is how most lenders operate. Trying to push a conventional loan with a 600 score through a standard lender is often a frustrating exercise in futility, leading to denials and wasted time that could be spent pursuing more viable options.
However, I did mention "rare exceptions," and it's important to acknowledge them, even if they're not your primary strategy. These exceptions usually come in the form of portfolio lenders. A portfolio lender is a bank or credit union that keeps the loans they originate on their own books ("in their portfolio") rather than selling them off to Fannie or Freddie. Because they're holding the risk themselves, they have more flexibility to set their own underwriting guidelines. Some smaller, local banks or credit unions might have niche programs or be willing to manually underwrite a conventional loan for a borrower with a 600 score, especially if that borrower has a long-standing relationship with the institution, significant assets held there, an exceptionally low DTI, or a very large down payment (e.g., 25-30% or more). These are truly rare birds, and they usually come with higher interest rates and fees to compensate for the added risk they're taking on by not selling the loan. It's not something to bank on, but if you have a strong existing relationship with a local financial institution, it might be worth an exploratory conversation – just don't get your hopes up too high. For most people with a 600 score, the focus should remain squarely on government-backed programs.
Strategies to Improve Your Chances (Before Applying)
Okay, so we know it's possible, and we know which loan programs are your best bet. But why settle for merely "possible" when you can significantly improve your chances and potentially even secure better terms? Taking proactive steps before you even submit a formal mortgage application can make a world of difference. Think of it as training for a marathon: you wouldn't just show up on race day without preparation. The same goes for your mortgage application. A little strategic effort now can save you a lot of headache, stress, and money down the line. Let’s talk about how to make yourself the most attractive borrower possible, even with that 600 starting point.
Credit Score Enhancement: Quick Wins and Long-Term Fixes
Improving your credit score is arguably the most impactful thing you can do to enhance your mortgage prospects, even if you only manage a modest bump. Every point counts, and even a 20-30 point increase can shift you into a better risk category for some lenders or programs. This isn't about magic; it's about understanding how credit scores are calculated and then strategically addressing the factors that are pulling yours down.
Let's start with some quick wins. First, dispute any errors on your credit report immediately. Get copies of your credit reports from all three major bureaus (Equifax, Experian, TransUnion) at AnnualCreditReport.com (it's free!). Scrutinize every single entry. Are there accounts you don't recognize? Incorrect payment statuses? Outdated negative information that should have fallen off? Even minor errors can depress your score. Disputing them is a relatively quick process that can yield results in 30-45 days. Second, focus on paying down revolving debt, especially credit card balances. Your credit utilization ratio (how much credit you're using versus how much you have available) is a huge factor in your score. Aim to keep your utilization below 30% on each card, and ideally below 10% overall. If you can pay down a card with a high balance, you might see a score jump relatively quickly. A common tactic here is to pay down your highest balance first, or the card closest to its limit.
For long-term fixes, consistency is key. First, make all your payments on time, every single time. Payment history is the most significant factor in your credit score, accounting for about 35% of your FICO score. Even one late payment can cause a substantial drop. Set up auto-pay if you have to, but do not miss payments. Second, avoid opening new credit accounts in the months leading up to your mortgage application. Every new credit inquiry causes a slight temporary dip in your score, and opening new lines of credit increases your overall available credit, which, ironically, can make lenders nervous if you're not using it responsibly. It also shortens your average credit age, another scoring factor. Third, consider becoming an authorized user on a credit card belonging to someone with excellent credit (a trusted family member, for example). Their positive payment history and low utilization can "rub off" on your report, but be aware that you are also responsible for the debt if the primary cardholder defaults. Remember, credit repair takes time, but these focused actions can start moving the needle in the right direction, giving you a stronger footing when you eventually apply for that mortgage.
Debt Reduction: Lowering Your DTI Ratio
Beyond your credit score, one of the most powerful levers you have to pull to improve your mortgage eligibility, especially with a 600 credit score, is to significantly lower your Debt-to-Income (DTI) ratio. I cannot stress this enough. Even if your credit score is fair, a very low DTI ratio tells a lender that you are not financially overextended and that you have ample disposable income to comfortably handle your new mortgage payment. It’s a compelling compensating factor that can help offset the perceived risk of a lower score.
Your DTI is calculated by taking your total monthly debt payments (credit cards, car loans, student loans, personal loans, and the estimated new mortgage payment) and dividing that by your gross monthly income. Lenders typically look for a DTI below 43%, though some government-backed programs can stretch higher, especially with other strong factors. The lower you can get this number, the better.
