Finance
A Mississippi lender calculates a borrower's 'back-end' (total) debt-to-income ratio at 46%. For a conventional loan, this:
AIs well within the acceptable range
BExceeds standard conventional loan DTI guidelines, which generally require back-end DTI at or below 43–45%, though DU/LP automated approvals may allow higher DTIs✓ Correct
CAutomatically disqualifies the borrower from any loan
DIs required for jumbo loans
Explanation
Conventional loan guidelines (Fannie Mae/Freddie Mac) generally target back-end DTI at or below 43–45%, though Desktop Underwriter (DU) or Loan Product Advisor (LP) automated approvals may allow higher DTIs with compensating factors. A 46% DTI may receive a manual underwriting referral or require compensating factors.
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