Patrick's Quick Answer
The underwriter does not count your utilities, your car or home insurance, or your phone bill in your debt-to-income ratio. She does count your installment payments like an auto loan, your student loan payments, and your revolving credit payments. And student loans count even when they are sitting in deferment or forbearance. That is the whole list, and knowing which side each bill falls on is what keeps your ratio honest.
This is milestone 6 of The Essential First-Time Homebuyer Roadmap, and it sits right after how you get paid for a reason. Your income is one half of the debt-to-income ratio, and your monthly debt is the other. If you mislabel what counts as debt, you misjudge what you can afford. So let us get the list straight before you hand your file to Patrick the Loan Officer.
What the Underwriter Does NOT Count
Start with the good news, because most buyers assume the wrong things here. These are not counted in your debt-to-income ratio: utility payments, car and home insurance payments, and phone payments. Your electric bill in July in San Antonio can be brutal, your car insurance on a Texas Hill Country commute is real money, and your phone plan is a fixed cost. None of it lands on the bouncer's clipboard. The underwriter is looking for obligations that appear as monthly debt on your credit report, not the everyday bills that keep the lights on.
What DOES Count
Here is what lands on the clipboard: installment payments, like an auto loan or any other loan with a fixed monthly amount; student loan payments; and revolving credit payments, which is the minimum due on your credit cards. These are the payments the underwriter adds to your proposed new mortgage payment when she calculates your debt-to-income ratio. The distinction is simple: fixed, reported debt obligations count. Monthly lifestyle bills do not.
The Student Loan Rule That Surprises Everyone
The one that trips up the most buyers is student loans. If your loans are in deferment or forbearance, you might think they do not count, because you are not currently making a payment. Wrong. They count anyway. The underwriter includes student loan payments in your DTI whether you are paying them right now or not. If you are carrying them, plan for them in your pre-approval math, because they will be there. This is one of the most common reasons a buyer's approved amount comes in lower than their own quick estimate.
The San Antonio Angle
This matters on the ground here because so many San Antonio and Hill Country buyers are carrying both a truck payment and student loans, with a credit card or two in the mix. A household income that looks healthy on paper can get squeezed fast once the underwriter adds the auto loan, the student loans, and the revolving minimums on top of the new mortgage. The fix is to run your own list before you shop, using the roadmap's six-month runway. Pull every reported obligation, separate the bills that do not count from the debts that do, and you will know your real number before you fall for a house that is out of reach. When you know your real number, buying with Patrick protects it from your first showing to closing, and the next milestone, the bouncer at the door, shows what the underwriter does with this list.
Reality Bite
I have watched buyers celebrate that their utilities and insurance "won't count," then get blindsided by a deferred student loan they forgot was still on the report. The list is short and it does not care how you feel about it: installment loans, student loans, and revolving credit count. Utilities, insurance, and phone do not. Run the list yourself before you shop, because the bouncer at the door does not make exceptions.
Frequently Asked Questions
Do utility bills count toward my debt-to-income ratio? Tap to expand
Do student loans count in my DTI even if they are in deferment or forbearance? Tap to expand
What is the difference between what counts as debt and what does not? Tap to expand
Not sure which of your bills count as debt?
Bring me your list of monthly payments and I will tell you exactly which ones land on the underwriter's clipboard and which one is just a bill. Ten minutes on the phone beats guessing your own debt-to-income ratio and getting surprised at pre-approval.
About Patrick Kevin Fagan, REALTOR®
Patrick Kevin Fagan is a Texas Real Estate Sales Agent (#454749) with AXEN Realty LLC and a Senior Loan Officer (NMLS ID #877741) with NEXA Mortgage, LLC (NMLS #1660690). He brings 23+ years in mortgage lending and 19 years in real estate, serving homebuyers, homeowners, and sellers across Greater San Antonio and the Texas Hill Country. His goal with every first-time buyer is the same: explain every step, protect your interests, and keep money in your pocket.
Sincerely,
Patrick, The Mortgage Patriot
Source: The Essential First-Time Homebuyer Roadmap, Phase 01: Assess Your Financial Foundation, Milestone 6: What Counts as Monthly Debt and What Does Not. Last reviewed: October 5, 2026.
Debt-to-income guidelines vary by loan program and by lender. Every underwriter applies its own rules for counting obligations, including how deferred or forbearance student loans are treated, so confirm your specific debt situation with your loan officer before relying on any outcome.
Answered by Patrick Kevin Fagan
Texas Real Estate Sales Agent #454749, AXEN Realty LLC · Senior Loan Officer, NMLS ID #877741, NEXA Mortgage, LLC
Call or text: 210-317-6514
