Compensating Factors

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January 1, 1 6 min read Definitions
Compensating Factors
Compensating Factors Creditworthiness Loan Approval Borrower Criteria Mortgage Underwriting
Compensating factors are criteria used to enhance a borrower’s creditworthiness by considering elements beyond the standard qualifying ratios. These factors help lenders make informed decisions when traditional metrics don't tell the whole story.
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