Is there a back-end ratio limit on eligibility?
No. As a condition of the modification, borrowers whose back-end ratio (total debt to income) exceeds 55% must certify that they will participate in a housing counseling program to help them create a sustainable financial plan. The back-end ratio is described in detail in the Guidelines. Generally, it is the ratio of the borrower’s total monthly debt payments (such as PITIA, mortgage insurance premiums, junior lien payments, and payments on other debts) to the borrower’s gross monthly income.
