Debt Burden

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January 1, 1 6 min read Definitions
Qualifying Ratio
Qualifying Ratio Debt Burden Loan Approval Debt Service FNMA FHA FHLMC First-Time Buyers
A measure used by lenders to determine the maximum percentage of a borrower's income that can be allocated to debt payments and still qualify for a loan. This ratio helps assess the lender's risk exposure.
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