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Freddie Mac
Debt-to-income ratio can sink mortgage application
Debt-to-income ratio can sink mortgage application

WASHINGTON — For many home buyers, qualifying for a mortgage not only is a tough challenge but one that ends unhappily: They get rejected. The reasons for the turndowns typically involve multiple factors, including below-par credit scores, inadequate documented income to support the monthly payments, and little savings in the bank. But a new survey by credit-score giant FICO offers buyers a rare peek inside the heads of credit-risk managers at financial institutions across the country and in Canada. Researchers asked a representative sample of them what single factor in an application makes them most hesitant to fund a loan request — in other words, what's most likely to...