When qualifying a buyer using the Fannie Mae guidelines, what is the ratio allowed for the amount of money for housing expense c

Question

Mariana [72]

2 years ago

8

When qualifying a buyer using the Fannie Mae guidelines, what is the ratio allowed for the amount of money for housing expense c

ompared to GMI

Business

1 answer:

vfiekz [6] · Answer 1 · 2022-03-01T15:32:36+03:00

Answer:

28%

Explanation:

Most mortgage lenders, including Fannie Mae, use the 28/36 rule. That rule states that a family should spend no more than 28% of the gross monthly income (GMI) on housing expenses, and pay no more than 36% of GMI to cover debts (mortgage payments are included in this 36%).

Statistics show that households that do not comply with the 28/36 rule, tend to have difficulty paying back loans.