Under General QM, can a borrower with high DTI qualify?

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Multiple Choice

Under General QM, can a borrower with high DTI qualify?

General QM is designed to ensure a borrower has a stable ability to repay by tying qualification to a debt-to-income ratio limit. For General QM, that limit is 43%: if the borrower's total monthly debts exceed 43% of gross monthly income, the loan does not meet General QM criteria. So, a borrower with a high DTI would not qualify under General QM. There are other QM pathways that can still apply to higher DTIs (such as certain exemptions or government-backed programs), but those are separate from General QM. The other options misstate the rule since they suggest either no QM is possible with high DTI, that all QM is disqualified above the cap, or that only government-backed loans can qualify—none of which accurately describe General QM.

General QM is designed to ensure a borrower has a stable ability to repay by tying qualification to a debt-to-income ratio limit. For General QM, that limit is 43%: if the borrower's total monthly debts exceed 43% of gross monthly income, the loan does not meet General QM criteria. So, a borrower with a high DTI would not qualify under General QM. There are other QM pathways that can still apply to higher DTIs (such as certain exemptions or government-backed programs), but those are separate from General QM. The other options misstate the rule since they suggest either no QM is possible with high DTI, that all QM is disqualified above the cap, or that only government-backed loans can qualify—none of which accurately describe General QM.

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