Definition of "Qualification Ratios"

Myrna  Strain real estate agent

Written by

Myrna Strainelite badge icon

Watson Realty Corp

Requirements stipulated by the lender that the ratio of housing expense to borrower income and the ratio of housing expense plus other debt service to borrower income cannot exceed specified maximums, e.g., 28% and 35%. These may reflect the maximums specified by Fannie Mae and Freddie Mac; they may also vary with the loan-value ratio and other factors.

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