The back-end ratio is one of several criteria used to qualify homebuyers or owners for mortgage loans. It takes into account existing long-term debt of the loan applicant, contrasting with the front-end ratio.
The Debt-to-Income Ratio (DTI) measures a borrower’s ability to manage monthly payments and repay debts. This ratio compares an individual's gross income to their combined housing and nonhousing expenses.
Housing counseling agencies provide educational, advisory, and credit counseling services to individuals attempting to obtain housing, especially targeting lower-income clients.
