What are the typical lending ratios for a home loan?
Most conforming loan lenders use a front end and back end ratio to qualify candidates for home loans. Typically your total mortgage payment cannot surpass 28% of your gross monthly income. Likewise your total debt obligations including your mortgage payment cannot typically surpass 36% of your gross monthly income. Non-conforming lenders however have more lenient guidelines and will usually only use one guideline. Typically they will qualify a candidate whose total monthly obligation ratio is 50% or less.
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