The number I use is PITI — Principal, Interest, Taxes, and Insurance. PMI is required on Conventional loans with less than 20% down and drops off at 20% equity. FHA MIP is required regardless of down payment if you put less than 10% down.

These are DTI-based guidelines. Your actual approval also depends on credit score, employment history, reserves, and property type. A higher credit score can unlock higher DTI allowances. This is your starting point — not your ceiling.

W-2 employees: I use your current base pay. Self-employed: I use your 2-year tax return average. Bonus and overtime only count if received consistently for 2+ years and documented on W-2s. Social Security and pension income count if it will continue for 3+ years.