Behind wheels was fine. At first I didn't think it would clear our electric step but it went between the mudflap and the step. We tend to drag the rear once in awhile, so I wouldn't go straight out the back.
I'm nobody's physicist, but I suspect exhaust would be sucked back to the rear of the coach as badly or worse coming out the rear than out a side.
What year Dodge? No Catalytic Converter, I take it. Our Ford E350 was 1983, and either that year or perhaps 1984 was the last to have a cat on that chassis. Our FM kit was for a couple years later and was billed as a "Cat-Back" setup. It came with an extra piece of straight pipe to make up for a long wheelbase chassis and that was enough to make up for the non-existent cat and the damage I cut off of the crossover pipe. Turned out to be a sweet setup, and you should be able to do the same.
What are you using for a muffler? As I recall, I put Walker 20475 on the Dodge. It was 2-1/2" in and out, and I think there was a 3" version, plus a welded and maybe a stainless.
Just be sure the muffler you choose is the true "size" all the way through. I've seen some mufflers with 2-1/2" "necks" to connect to pipe, but you could see where they were reduced to 2" entering and leaving the muffler itself.