Debt to Income ratio for mortgage

Does anyone know how lenders calculate this? DH and I own a small house that we rent out. It's an investment property. We have no other debt but that. I actually got a pre-approval for our real home a few months ago but the seller didn't accept our offer so that didn't go through.

I read that it is something like:

Gross income/12 X .28= housing expenses per month

Gross income/12 .36= houses expenses plus other debt per month

Does that look familiar?

Re: Debt to Income ratio for mortgage

Debt-to-income ratio, as a lender would use it -- would just be monthly debt divided by gross income (and then multiplied by 100 to get a percentage). I think different lenders have different criteria in terms of what the cutoff is to qualify for a mortgage. I know I've had buyers who are on the cusp of having a too high ratio, and the loan officer will recommend paying off a car loan, for example, in order to qualify for a mortgage loan.

It seems like you are trying to figure out what is the acceptable percentage of your gross income to be spent on housing costs, which is a different issue. And I think dependent on your personal circumstances and comfort level.