Whether you're eyeing a stunning property as a buyer—worried if your finances will stack up for mortgage approval—or as a seller, vetting if a potential buyer can truly close the deal without escrow headaches, one key metric rules them all: the debt-to-income (DTI) ratio. This figure compares your monthly debt payments (including your proposed mortgage) to your gross income, and lenders scrutinize it to gauge affordability.

From our deep dive into current lender guidelines (as of February 2026), DTI limits vary widely:

• Strict lenders (e.g., some conventional programs like Fannie Mae's baseline) cap at around 36%, favoring rock-solid financial profiles.

• Moderate standards (common for FHA or qualified mortgages) allow up to 43%, balancing risk with accessibility.

• Lenient options (VA loans or compensating factors in conventional/FHA) stretch to 50% or more, opening doors for higher earners with clean slates.

But what if you have zero existing debt? That supercharges your qualifying power, as your entire DTI can go toward housing. Assuming a 35% down payment, a 30-year fixed mortgage at today's average 6% rate, typical California property taxes (1.25% annual), and homeowners insurance (0.3% annual), here's the annual salary you'd need to qualify for these high-end homes. These are ballpark figures—real scenarios factor in credit, reserves, and more—but they'll spark your "what if" thinking.

Home Price	Strict DTI (36%)	Moderate DTI (43%)	Lenient DTI (50%)
$2,000,000	$345,916	$289,604	$249,060
$3,000,000	$518,875	$434,407	$373,590
$4,000,000	$691,833	$579,209	$498,120

Surprised by how "attainable" a $2M home could be with lenient lending and no debt? Or as a seller, relieved to know a $300K earner might seal the deal on your $3M listing? These numbers assume ideal conditions, but tweaks like interest rates or local fees could shift them. Curious how your specific situation measures up—or strategies to optimize for approval? Dive deeper into personalized scenarios; your dream transaction might be closer than you think.