What are the two ways a conventional conforming loan can meet QM Standards?

The correct answer highlights the relationship between debt-to-income (DTI) ratios and fee structures within the context of Qualified Mortgage (QM) standards. For a conventional conforming loan to meet QM standards, it is generally required that the DTI does not exceed 43%, which reflects the upper limit most lenders use to ensure that borrowers can comfortably manage their mortgage payments alongside their other debts.

Additionally, the specified fee structure, at 3%, aligns with QM provisions, which establish limits on the points and fees that can be charged, ensuring that loans remain affordable and accessible. This combination of a DTI ratio below the stipulated maximum and reasonable fees create a financial framework that protects borrowers from taking on unmanageable debt.

The other options involve DTI ratios that exceed the QM standard limits or fees that may be deemed excessive, thus disqualifying them from meeting the QM criteria. Therefore, the combination of a 43% DTI and 3% in fees is the model that aligns with QM requirements for a conventional conforming loan.