Finance
The back-end ratio (total debt ratio) used by lenders compares:
AMonthly housing expense to net income
BAll monthly debt obligations (PITI plus other debts) to gross monthly income✓ Correct
CAnnual debt service to net operating income
DLoan amount to appraised value
Explanation
The back-end ratio = (PITI + all recurring monthly debts) ÷ Gross Monthly Income. Conventional lenders generally prefer this at or below 36–43%.
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