What is the maximum Debt to Income Ratio (DTI) for standard members in the NACA program?

In the NACA program, the maximum Debt to Income Ratio (DTI) for standard members is set at 40%. This means that when assessing a borrower’s ability to repay their loan, their monthly debt obligations—including the projected mortgage payment—should not exceed 40% of their gross monthly income.

A DTI of 40% is considered a balance that allows for responsible borrowing while ensuring that borrowers are not over-leveraged. Such a ratio helps in promoting sustainable homeownership by requiring that members maintain enough income for other essential expenses and living costs. Ensuring affordability is crucial for the long-term success of homeowners in the NACA program, which is designed to assist low to moderate-income individuals in achieving homeownership without falling into financial distress. This focus on a lower DTI is part of NACA's mission to empower community members with the means to secure housing while ensuring they can manage their financial responsibilities effectively.