A South Dakota borrower's debt-to-income (DTI) ratio is used to:
Correct Answer
B) Evaluate the borrower's ability to repay the loan
The DTI ratio compares a borrower's monthly debt obligations to their gross monthly income. Lenders use this ratio to assess whether the borrower can afford the new mortgage payment in addition to existing debts. Most conventional loans require a DTI below 43-50%.
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