Finance
A Florida borrower has a debt-to-income ratio of 48%. For a conventional loan, this most likely means:
AThe borrower will receive the best interest rate
BThe borrower may have difficulty qualifying — conventional guidelines typically cap back-end DTI at 43-45%✓ Correct
CThe borrower automatically qualifies for an FHA loan
DThe borrower needs a cosigner only if DTI exceeds 50%
Explanation
Conventional loan guidelines (Fannie Mae/Freddie Mac) generally cap the back-end DTI at 43-45% for manually underwritten loans (45-50% with strong compensating factors for DU approved). A 48% DTI may require compensating factors or may disqualify the borrower.
Related Florida Finance Questions
- Florida's documentary stamp tax on mortgages (intangible tax) is calculated based on the:
- In Florida, the documentary stamp tax on a mortgage (also called an 'intangible tax' or 'mortgage tax') is charged at:
- A Florida homebuyer uses a 'piggyback' loan (80-10-10 structure). This means:
- A Florida buyer is approved for a USDA Rural Development loan. Which characteristic is MOST associated with this loan type?
- In Florida, a 'purchase money mortgage' is one where:
- In Florida, what is 'seller financing' or 'owner financing'?
- What is a 'balloon mortgage' in Florida?
- Under TRID, which document replaces the former HUD-1 Settlement Statement for most residential transactions?
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →