Finance
A Minnesota borrower has a debt-to-income (DTI) ratio of 48%. Most conventional lenders require DTI under what threshold?
A28%
B36%
C43%✓ Correct
D50%
Explanation
Conventional lenders typically require a maximum DTI of 43% for qualified mortgages, though some programs allow up to 50% with compensating factors. DTI compares monthly debt payments to gross monthly income. Minnesota borrowers with higher DTI ratios may need FHA, VA, or USDA loan programs which have more flexible DTI requirements.
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