Lenders Commonly Use a GDS Ratio of 30% and a TDS

question 71

True/False

Lenders commonly use a GDS ratio of 30% and a TDS ratio of 40% as guidelines to determine the amount you can comfortably afford for housing.

---

Definitions:

Penalty

A punishment imposed for breaking a law, rule, or contract.

Zoning Regulations

Local government laws that dictate how property in specific geographic zones can be used, affecting land use, building sizes, and the type of buildings allowed.

Non-Conforming Use Permit

A zoning variance allowing property to be used in a way that does not comply with the current zoning ordinances.

Variance

The measure of dispersion between numbers in a set, indicating how much values differ from the average.