Finance
A Texas borrower's debt-to-income ratio (DTI) for a conventional loan typically should not exceed:
A28% front-end only
B36% back-end ratio
C43–45% back-end ratio for most conventional programs✓ Correct
D50% front-end ratio
Explanation
Most conventional loan programs use a 43–45% back-end DTI as a maximum, though Fannie Mae and Freddie Mac may allow up to 50% with compensating factors. FHA allows up to 43% (or higher with compensating factors).
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