Finance
What is the debt-to-income (DTI) ratio limit generally used by conventional lenders for total housing expense?
A20%
B28%✓ Correct
C36%
D45%
Explanation
Conventional lenders typically use a front-end (housing expense) DTI limit of 28% of gross monthly income. The back-end (total debt) DTI limit is generally 36-43%, though some loan programs allow higher ratios with compensating factors.
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