Gold Coast Class Practice Test

The main concept is how FHA debt-to-income limits guide loan qualification by looking at two ratios: a front-end housing expense ratio and a back-end total debt ratio. The front-end ratio compares the proposed housing payment—principal and interest plus property taxes, homeowners insurance, and any HOA dues (often abbreviated as PITI)—to gross monthly income. For FHA loans, this housing portion should typically be no more than 31% of gross income. The back-end ratio looks at all monthly debt obligations, including housing plus minimum payments on credit cards, student loans, car loans, and other debts, and this total should generally not exceed 43% of gross income. So the standard FHA qualifying thresholds are 31% and 43%. That’s why the correct numbers are 31 and 43—the other options don’t match these established limits.