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Backend Ratio, is a term used in home financing. It is the total of all the debts a borrower has as a percentage of their gross income. FNMA, FHLMC and FHA use this ration while VA uses only one percentage and that is determined by the borrower's stable income. (See Front End Ratio, which is the actual housing expense without the other debts included. Lenders will normally use the lower of the two numbers in qualifying although the borrower normally must qualify under both amounts.)

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Q: What is backend ratio?
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