Housing payment $1,700, other debts $400/mo, income $5,200. QM eligible (43% max DTI)?

Correct answer: Yes, DTI is 40.4%

Back-end DTI = ($1,700 + $400) ÷ $5,200 = $2,100 ÷ $5,200 = 40.4%. Under the revised General QM rule (effective March 2021), there is no hard DTI cap. The General QM test is an APR-to-APOR comparison: a first-lien loan qualifies if its APR does not exceed APOR by 2.25 percentage points. The borrower's DTI must still be considered and verified, but a 40.4% DTI alone does not disqualify a loan from QM status.