Alabama Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Master your Alabama real estate exam with our comprehensive practice test. Tailored feedback, expert tips, and up-to-date questions to ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is FHA's debt-to-income ratio requirement for mortgage payment expense to effective income?

The correct answer is: 29%

The correct answer for FHA's debt-to-income ratio requirement for mortgage payment expense to effective income is 29%. This means that a borrower's total mortgage payment, including principal, interest, taxes, insurance, and any homeowner association fees, should not exceed 29% of their effective income. This requirement is in place to ensure that borrowers are not taking on more debt than they can reasonably afford. Options A, C, and D are incorrect because they are not consistent with FHA's specific requirement of 29%. Option A is significantly lower than the correct answer, while options C and D are higher. So, while these options may be general guidelines for debt-to-income ratios, they do not accurately reflect FHA's specific requirement.