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How to calucate Debt to ratio ?

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How to calucate Debt to ratio ?

Does any one no the formula that they use to calcutae debt to ratio to qualify for home loan? thank u
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Re: How to calucate Debt to ratio ?

2 ratios

front or top ratio and bottom or back ratio

 

front ratio = proposed housing divided by gross income

back ratio = proposed housing + all minimum payments(credit cards, auto, child support, ect) divided by gross income. we dont include utilities and such in the calculations.

 

Retired Lender
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