What percent does a lender generally look for when considering the debt-to-income (DTI) ratio of a loan applicant?

Lenders generally look for a debt-to-income ratio of 36% or less, though limits can vary by lender and loan type. This means the applicant’s monthly debt payments should use no more than 36% of their gross monthly income. The correct choice is “less than or equal to 36%.”

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