Carlos earns a gross income of $5,580 per month and applies for a mortgage with a monthly PITI of $1,450.80. Carlos has other financial obligations totaling $764.46 per month. If the lending ratio guidelines are as given in the table below. Lending Ratio Guidelines Mortgage Type Housing Expense Ratio Total Obligations Ratio FHA 29% 41% Conventional 28% 36% What type of mortgage, if any, would Carlos qualify for? O Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage. O Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage. O Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines. O Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Carlos earns a gross income of $5,580 per month and applies for a mortgage with a monthly PITI of $1,450.80. Carlos has other financial obligations totaling $764.46 per month.
If the lending ratio guidelines are as given in the table below.
Lending Ratio Guidelines
Mortgage Type
Housing Expense Ratio
Total Obligations Ratio
FHA
29%
41%
Conventional
28%
36%
What type of mortgage, if any, would Carlos qualify for?
O Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage.
O Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage.
O Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines.
O Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.
Transcribed Image Text:Carlos earns a gross income of $5,580 per month and applies for a mortgage with a monthly PITI of $1,450.80. Carlos has other financial obligations totaling $764.46 per month. If the lending ratio guidelines are as given in the table below. Lending Ratio Guidelines Mortgage Type Housing Expense Ratio Total Obligations Ratio FHA 29% 41% Conventional 28% 36% What type of mortgage, if any, would Carlos qualify for? O Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage. O Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage. O Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines. O Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.
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