Finance

A Rhode Island borrower has a debt-to-income ratio (DTI) of 45%. For conventional loans, most lenders prefer a DTI of no more than:

A25%
B36%–43%✓ Correct
C50%
D60%

Explanation

For conventional loans, most lenders prefer a DTI ratio of no more than 36%–43%. A DTI above 43% may make it harder to qualify for a conventional loan, though some programs allow higher ratios with compensating factors.

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