To further lower your debt-to-income ratio (DTI), here are some focused strategies:

Strategies to Reduce DTI:

1. Pay Down High-Interest Debt: Start with credit cards or loans with the highest interest rates. This reduces your monthly payments and saves money over time.
2. Consolidate Debts: Combining multiple loans into a single one with a lower interest rate can simplify payments and potentially lower your monthly obligations.
3. Increase Minimum Payments: Paying more than the minimum on your debts each month can help reduce your balances faster.
4. Boost Income:
   • Take on freelance work, a part-time job, or monetize a skill or hobby.
   • Explore raises or promotions at your current job.
5. Reevaluate Spending Habits: Cut down on non-essential expenses, and allocate those funds to paying off debts.
6. Refinance Loans: Look into refinancing options to secure a lower interest rate and reduce monthly payments.
7. Avoid New Debts: Resist financing large purchases or applying for new credit lines until your mortgage process is complete.

---

Acceptable DTI for Lenders:

• Conventional Loans: Typically, lenders prefer a DTI of 43% or lower, though some may allow up to 50% if you have strong credit or additional savings.
• FHA Loans: The Federal Housing Administration often allows a higher DTI, sometimes up to 57%, depending on compensating factors like credit history or cash reserves.
• VA Loans: For veterans, acceptable DTIs may vary, but many lenders aim for 41% or less, while still considering higher ratios based on other financial strengths.
• Other Loans: Non-traditional or private lenders might have their own criteria, so it’s worth exploring if you face unique circumstances.