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In the industry we talk about "Front End Ratios" and "Back End Ratios."

Front End Ratios are all your monthly credit payments divided by your gross monthly income...

Back End Ratios are all your monthly credit AND housing payments divided by your income.

On conforming loans your ratios generally need to be around 32:38.

On non-conforming loans the lenders often don't even look at the front-end ratio, and back end can be anywhere from 45-55.

Hope that helps,
Dave Donhoff
Lic. Mortgage Broker
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