answersLogoWhite

0

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.)

User Avatar

Wiki User

12y ago

Still curious? Ask our experts.

Chat with our AI personalities

FranFran
I've made my fair share of mistakes, and if I can help you avoid a few, I'd sure like to try.
Chat with Fran
JordanJordan
Looking for a career mentor? I've seen my fair share of shake-ups.
Chat with Jordan
ProfessorProfessor
I will give you the most educated answer.
Chat with Professor

Add your answer:

Earn +20 pts
Q: What is backend ratio?
Write your answer...
Submit
Still have questions?
magnify glass
imp