Finance
A Virginia buyer's debt-to-income (DTI) ratio is calculated by dividing:
ATotal monthly debt payments by monthly gross income✓ Correct
BMonthly mortgage payment by annual gross income
CTotal debt by net monthly income
DMonthly housing costs by total assets
Explanation
DTI ratio = Total Monthly Debt Payments ÷ Monthly Gross Income. Lenders typically prefer a total DTI of 43% or less (back-end ratio), though guidelines vary by loan type.
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