|
Results for Qualifying Ratio
|
On this page:
|
Ratio used by mortgage lenders in determining the maximum amount of mortgage to approve, for example . . . The borrower's total regular monthly debt as a percentage of gross monthly income. The qualifying ratio is the lender's rule of thumb for determining a borrower's Ability to Pay.
The maximum percentage of a borrower's income a lender or agency (FNMA, FHA, FHLMC) will allow prospective debt payments to be and still approve the loan. See Back-End Ratio, Front-End Ratio.
Example: Qualifying ratios provide a test of lender risk exposure by limiting the amount of Debt Service burden a borrower is allowed to undertake. Specific ratios vary by loan product, generally being higher for loans designed for first-time buyers.
Join the WikiAnswers Q&A community. Post a question or answer questions about "Qualifying Ratio" at WikiAnswers.
Copyrights:
 |
 | Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
|
| Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved. Read more |
Search for answers directly from your browser with the FREE Answers.com Toolbar!
Click here to download now. 
Get Answers your way! Check out all our free tools and products.
Mentioned In:
