What is the commonly cited DTI cap for General QM?

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Multiple Choice

What is the commonly cited DTI cap for General QM?

The main idea is the debt-to-income ratio limit that defines a General QM. For a loan to qualify as a General QM under the Ability-to-Repay rule, the borrower's DTI must not exceed 43%. DTI is calculated by dividing total monthly debt payments by gross monthly income, so this cap ensures borrowers have enough income to support their debt load. The 43% threshold is the standard safe-harbor benchmark for General QM, which is why it’s the commonly cited figure. The other percentages aren’t the General QM limit; they may appear in different underwriting contexts, but they do not define General QM eligibility.

The main idea is the debt-to-income ratio limit that defines a General QM. For a loan to qualify as a General QM under the Ability-to-Repay rule, the borrower's DTI must not exceed 43%. DTI is calculated by dividing total monthly debt payments by gross monthly income, so this cap ensures borrowers have enough income to support their debt load. The 43% threshold is the standard safe-harbor benchmark for General QM, which is why it’s the commonly cited figure. The other percentages aren’t the General QM limit; they may appear in different underwriting contexts, but they do not define General QM eligibility.

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