How To Get a Loan With a High Debt-to-Income Ratio

Yes, you can get a loan with high debt-to-income, with options such as secured loans, getting a co-signer and having a solid credit score. Once your DTI passes 43%, lenders get a bit more cautious, but there are still options on the table.

Here's where to look and what lenders are checking for.

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What Is a Debt-To-Income Ratio?

Your debt-to-income ratio (DTI) measures how much of your gross monthly income is going toward monthly debt payments, including credit cards, student loans, mortgages and car payments.

To calculate your DTI, you'll want to divide your monthly debt payments by gross monthly income, then multiply that by 100.

Monthly debt payments / gross monthly income x 100 = DTI

Say your required monthly debt payments look like this:

• Car loan: $400

• Student loan: $250

• Credit card(s): $150

• Personal loan: $200

Your monthly debt payments would add up to $1,000. With a gross monthly income of $4,000, your DTI would look like this: $1,000 / $4,000 x 100 = 25%.

Lenders look at DTI to decide whether you're stretched too thin. A low DTI means you've got some wiggle room. A high DTI? That raises red flags — and makes lenders wonder about your ability to pay back on time.

While requirements vary widely based on lender and your individual situation, here's a general guideline when it comes to your loan approval chances: a DTI of under 35% is ideal, and anything above 43% may be less than favorable to lenders.

How To Get a Loan With a High Debt-to-Income Ratio: A Step-by-Step Guide

Here are seven steps to follow:

1. Know your DTI: Calculate your DTI to see where you fall.

2. Build up your credit score: If you don't have a good credit score, take some time to improve it before you apply. Having a good credit score may help balance your financial profile if your DTI is high, because it reflects habits such as making on-time payments consistently.

3. Get a co-signer: If you need help qualifying, consider applying for personal loans with a co-signer. Choose someone with steady income, strong credit and low DTI.

4. Consider a secured loan: Explore secured loans if you have some collateral to put toward it.

5. Look into refinancing or debt consolidation: Consolidation loans combine multiple debts into one, ideally with a lower interest rate and a single monthly payment.

6. Increase income and decrease debt: Focus on high-interest debts first, and try the snowball method or avalanche method to accelerate your progress and improve DTI.

7. Steer clear of payday loans: Avoid getting a payday loan just to cover a gap — these tend to have high APRs, sometimes reaching as much as 400%.

Best Loan Options for High DTI Borrowers

Even if you have a high debt-to-income ratio, there are still loans you could qualify for. Take a look below:

1. Personal Loans

Unsecured personal loans are the most common type. Most traditional lenders prefer a DTI of less than 36%, though some lenders may accept borrowers with ratios up to 43% depending on personal loan requirements, such as credit score and income stability.

2. Payday Loans

Payday loans have less stringent qualification requirements compared to other types of loans. Payday lenders don't evaluate your DTI. The tradeoff, though, is the high cost.

These short-term loans are known to have APRs of up to 400% or more and payment cycles that trap borrowers in revolving debt. Sure, they're technically an option — but a risky one. Payday loans are often a last resort, and they rarely help long-term.

3. Secured Loans

Unlike unsecured personal loans, secured loans are backed by collateral — usually your car, home or savings. This reduces risk for the lender, meaning they might be more open to working with DTI ratios up to 43% and possibly higher, especially if the collateral holds significant value and your credit score is strong enough. 

But beware — if you miss payments, you could lose whatever you've pledged. So while these loans for high DTI borrowers are easier to get, they come with higher stakes.

4. Peer-to-Peer Lending

Peer-to-peer (P2P) loans connect you directly with individual investors or groups through online platforms. These lenders often look beyond just your DTI — taking into account your credit score, income, job history and even your personal story. Because of this, DTI limits vary greatly by platform — but like with other loans, if yours is under 36%, you may be in good shape.

This doesn’t mean you should apply if your DTI is higher — again, each lender has individual requirements.

The Bottom Line: Smarter Borrowing Starts Here

Taking out personal loans for borrowers with a high DTI ratio isn't just about getting approved—it’s about knowing what you're getting into. Before signing on the dotted line, ask yourself:

• Can I comfortably afford the payments?

• Will this loan improve my overall financial health — or make things worse?

• Are there smarter options I haven’t explored?

Your DTI ratio doesn't have to define your financial future. There are loans for borrowers with a high DTI, strategies to improve your odds and ways to get out from under debt. Be strategic, be skeptical and use the system to your advantage.

FAQ

Can I still get a loan with a high debt-to-income ratio?

Yes — especially if you explore high debt-to-income ratio personal loans like secured or peer-to-peer lending, or apply with a co-signer.

What's the maximum DTI most lenders will accept?

A DTI above 43% is generally considered high by most lenders.

Does debt consolidation lower my DTI?

Yes, debt consolidation can lower your DTI, but only if the loan has a lower interest rate or you stretch out the loan term so that it lowers your monthly debt payments.

Can I get a mortgage with a high DTI?

Yes, you can get a mortgage with a high DTI ratio. Lenders will look at all the variables — your income, credit score, how much money you've saved up or assets you own, the down payment and how your application looks.

Does having a co-signer help if my DTI is too high?

Yes, having a co-signer helps if your DTI is a bit high, but only if they have strong attributes, such as a solid credit score, income and very low debt. However, keep in mind that you'll only see your DTI decrease if the co-signer's income is included in the loan application.

Key Terms

• Debt-to-income ratio (DTI): All your monthly debt payments divided by your gross monthly income, then multiplied by 100. Lenders use it to gauge whether you can manage a new monthly payment, and limits vary by loan product and lender.

• Gross monthly income: The money you earn each month before taxes and other deductions are taken out — the income figure used in the DTI calculation.

• Secured loan: A loan backed by collateral such as a home, car or savings account. Because the lender has an asset to fall back on, secured loans often carry lower rates — roughly 4% to 7% — and may be available to borrowers with lower credit scores, but you can lose the pledged asset if you default.

• Co-signer: A second person who agrees to take legal responsibility for a loan if the primary borrower can't pay. Lenders generally look for a co-signer with strong credit, steady income and a low DTI.

• Debt consolidation: Combining multiple debts into a single loan, ideally with a lower interest rate and one monthly payment — which can lower your DTI when it reduces your total monthly payments.

Sources

• Consumer Financial Protection Bureau (CFPB): What is a debt-to-income ratio?

• Wells Fargo: What is a Good Debt-to-Income Ratio?

• CFPB: What is a credit score?

• Federal Trade Commission (FTC): How To Get Out of Debt

• U.S. Department of Housing and Urban Development (HUD): HUD Single Family Housing Policy Handbook 4000.1

• Code of Federal Regulations: 38 CFR 36.4340 — VA underwriting standards

• Fannie Mae: Fannie Mae Selling Guide B3-6-02 — Debt-to-Income Ratios

• Freddie Mac: Freddie Mac Single-Family Seller/Servicer Guide 5401.2

Parts of this article were created with AI assistance. MoneyLion editors reviewed, fact-checked and edited the final version and are responsible for its accuracy.