Finance
A Nebraska conventional loan applicant has a debt-to-income ratio of 50%. Most conventional lenders will:
AApprove the loan with a higher interest rate
BDecline the loan as exceeding typical DTI guidelines✓ Correct
CApprove the loan with a larger down payment
DRefer to FHA which has higher DTI limits
Explanation
Conventional loans typically require DTI ratios below 43-45% (with exceptions to 50% with compensating factors for some programs). A 50% DTI is at the edge or exceeds most conventional loan guidelines.
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