Debt-to-Income Ratio

Information by State  Print version

Chapter 2
Mortgage Credit Guidelines
Page 2-12

When either or both of the permissible ratios of 31/43 is/are exceeded, the lender is required to explain, in the "Remarks" section of the Mortgage Credit Analysis Worksheet (MCAW), why they believe the mortgage presents an acceptable risk. The lender must include on their MCAW any compensating factors used in the loan approval.

This requirement does not apply for loans rated acceptable by an Automated Underwriting System utilizing the FHA TOTAL Scorecard.