Finance
The debt-to-income ratio (DTI) used by lenders to qualify West Virginia mortgage borrowers is calculated as:
ATotal assets divided by total liabilities
BMonthly debt payments divided by gross monthly income✓ Correct
CNet income divided by monthly housing expense
DTotal loan amount divided by property value
Explanation
DTI is calculated by dividing total monthly debt payments (including the proposed housing payment) by gross monthly income. Lenders use this ratio to assess a borrower's ability to repay.
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