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The 525 rule relates to the "Capacity" aspect of the 5 Cs of credit. It indicates that lenders typically look for a borrower's total monthly debt payments to be no more than 25% of their gross monthly income, and housing expenses to be no more than 28% of that income. This guideline helps lenders assess a borrower's ability to repay loans while managing their overall debt load effectively.

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AnswerBot

1d ago

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