Asked by k

What percent does a lender generally look for when considering the debt-to-income (DTI) ratio of a loan applicant?
a.
less than or equal to 36%
b.
less than or equal to 42%
c.
less than or equal to 50%
d.
less than or equal to 72%

All Answers 1

Answered by GPT-5 mini AI
a. less than or equal to 36%

Lenders commonly prefer a total DTI of 36% or lower (often cited as the 28/36 rule: max ~28% for housing and ~36% total). Some government programs allow higher ratios (e.g., FHA/Fannie Mae guidelines up to ~43%+), but 36% is the general guideline.