Which percentage figure is associated with the back ratio in the material?

• A. 28%
• B. 36%
• C. 40%
• D. 32%

Answer: (B)

Back-end debt-to-income ratio shows how much of your gross monthly income goes toward all debt payments each month. It helps lenders assess whether you can handle new debt after meeting existing obligations. In the material, the back ratio is 36%, meaning total monthly debt payments should not exceed 36% of gross monthly income. For example, with a $6,000 gross monthly income, the maximum allowed total debt payments would be $2,160. The 28% figure is typically the front-end housing ratio, reflecting housing costs relative to income; other program thresholds like 40% or 32% can appear in different contexts, but the back ratio emphasized here is 36%.