Finance
A Louisiana borrower is applying for a conventional mortgage. The lender's maximum allowable back-end (total) debt-to-income ratio is typically:
A28%
B36%
C43–45%✓ Correct
D55%
Explanation
Conventional mortgage guidelines (Fannie Mae/Freddie Mac) typically allow a maximum back-end DTI of 43–45% (sometimes up to 50% with compensating factors). The back-end ratio includes all monthly debt payments divided by gross monthly income.
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