Final answer:
The maximum total-debt-to-income ratio that a borrower can have and still qualify for a FHA backed loan under normal circumstances is 43%.
Step-by-step explanation:
The maximum total-debt-to-income ratio that a borrower can have and still qualify for a FHA backed loan depends on the circumstances. Under normal circumstances, the maximum total-debt-to-income ratio is 43%.
This means that the borrower's monthly debt payments, including the proposed mortgage payment, should not exceed 43% of their monthly income. For example, if a borrower has a monthly income of $5,000, their total monthly debt payments should not exceed $2,150 ($5,000 * 0.43).