Finance
In Tennessee, the 'debt-to-income' (DTI) ratio used by lenders compares:
AMonthly debt payments to annual income
BMonthly debt payments (including housing) to monthly gross income✓ Correct
CTotal debt to total assets
DAnnual housing costs to annual net income
Explanation
DTI compares monthly debt payments (including the proposed housing payment) to gross monthly income. Lenders typically look for a back-end DTI of 43% or less for conventional loans.
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