Carlos earns a gross income of $5,580 per month and applies for a mortgage with a monthly PITI of $1,227.60. Carlos has other financial obligations totaling $887.22 per month. If the lending ratio guidelines are as given in the table below.
Carlos earns a gross income of $5,580 per month and applies for a mortgage with a monthly PITI of $1,227.60. Carlos has other financial obligations totaling $887.22 per month. If the lending ratio guidelines are as given in the table below.
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
Section: Chapter Questions
Problem 1PS
Related questions
Question
Carlos earns a gross income of $5,580 per month and applies for a mortgage with a monthly PITI of $1,227.60. Carlos has other financial obligations totaling $887.22 per month.
If the lending ratio guidelines are as given in the table below.
![-ints]
Lending Ratio Guidelines
me
Mortgage Type Housing Expense Ratio
FHA
Conventional
mit Answer
as given in the table below.
DETAILS
margin
ettlement
ppraisal
quity
29%
28%
type of mortgage, if any, would Carlos qualify for?
Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage.
Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage.
Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines.
Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.
Total Obligations Ratio
PREVIOUS ANSWERS
41%
36%
BRECMBC9 14.II.TB.001.
$1,227.60. Carlos has o
loan is a lump-sum second mortgage loan made on the available equity in a home.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febd1e779-59f2-4aa0-bd52-8088526fdf53%2Fe8b26934-dd2b-4a34-8a36-2ebb41e9c56f%2Flurle29_processed.jpeg&w=3840&q=75)
Transcribed Image Text:-ints]
Lending Ratio Guidelines
me
Mortgage Type Housing Expense Ratio
FHA
Conventional
mit Answer
as given in the table below.
DETAILS
margin
ettlement
ppraisal
quity
29%
28%
type of mortgage, if any, would Carlos qualify for?
Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage.
Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage.
Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines.
Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.
Total Obligations Ratio
PREVIOUS ANSWERS
41%
36%
BRECMBC9 14.II.TB.001.
$1,227.60. Carlos has o
loan is a lump-sum second mortgage loan made on the available equity in a home.
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