Finance
A Pennsylvania homebuyer with a DTI of 28% front-end (housing) and 38% back-end (total) would most likely:
ABe denied all conventional financing
BMeet conventional loan guidelines — front-end under 28% and back-end under 36–43% are typical targets✓ Correct
CBe required to use FHA financing
DNeed a co-signer regardless of income
Explanation
Conventional loan underwriting targets a front-end (PITI) ratio of 28% and a back-end (total debt) ratio of 36–43%. A borrower with 28% front-end and 38% back-end falls within acceptable conventional guidelines and would likely qualify with adequate credit and down payment.
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