Which income type is not typically included in the DTI ratio?

The correct choice is deferred income because this income type refers to amounts that will be received in the future but are not currently available to the borrower for monthly debt obligations. When calculating the Debt-to-Income (DTI) ratio, lenders focus on income that is stable and predictable, such as wages, salaries, bonuses, and other recurring earnings that the borrower can rely on for their current financial obligations.

Deferred income, on the other hand, does not contribute to the current financial situation of the borrower. It may involve future payouts like bonuses that haven't been realized yet or retirement funds that cannot be accessed without penalties. Since DTI calculations are concerned with the borrower’s ability to manage and repay debts, having income that is not yet available does not provide a clear picture of the borrower's financial health.

In contrast, adjusted annual income, qualifying income, and repayment income all reflect amounts that are currently part of the borrower's financial landscape, contributing to their ability to meet monthly expenses and obligations. Each of these types is necessary for understanding the borrower's capability to manage debt and support a loan application.