A West Virginia borrower's debt-to-income (DTI) ratio is calculated by:
Correct Answer
A) Dividing monthly debt payments by gross monthly income
DTI = Total monthly debt payments ÷ Gross monthly income. Lenders use this ratio to assess borrowing capacity. Most conventional loans require a DTI below 43-50%. The front-end ratio (housing only) is typically limited to 28-31%.
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