Loan Origination Activities · 27% of the SAFE exammedium
Correct answer: 25%
Front-end DTI (housing ratio) = PITI ÷ Gross Monthly Income = $1,500 ÷ $6,000 = 25%. The front-end ratio measures only housing expenses (Principal, Interest, Taxes, Insurance) relative to income. This is distinct from the back-end ratio, which includes all monthly debt obligations. FHA guidelines generally cap the front-end ratio at 31% and back-end at 43%, though exceptions exist with compensating factors.
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