Front-End Ratio

The front-end ratio (or housing expense ratio) measures the proportion of a borrower’s gross monthly household income required to pay the complete proposed monthly mortgage obligation (PITI: Principal, Interest, property Taxes, and homeowners/mortgage Insurance) plus any applicable homeowners association (HOA) dues. In standard underwriting models, lenders prefer a front-end ratio between 28% and 31%, pairing it with the back-end (total debt) DTI to assess mortgage affordability.