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27 September, 11:43

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

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  1. 27 September, 11:57
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    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.
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