Finance
A Florida buyer's DTI ratio is 42% (back-end). Under conventional Fannie Mae guidelines (Desktop Underwriter), this ratio may be approved with:
AAutomatic denial
BStrong compensating factors such as excellent credit, significant reserves, or a lower LTV✓ Correct
CNo additional conditions
DOnly if the property is in a designated opportunity zone
Explanation
While conventional loans prefer DTI ratios at or below 43-45%, Desktop Underwriter (DU) can approve loans up to 50% DTI with strong compensating factors such as excellent credit scores (740+), significant cash reserves, and lower LTV ratios.
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