Carlos earns a gross income of $5,680 per month and applies for a mortgage with a monthly PITI of $1,249.60. Carlos has other financial obligations totaling $994.00 per month. If the lending ratio guidelines are as given in the table below. *table chart* What type of mortgage, if any, would Carlos qualify for? (Choose from below which option Carlos should qualify for.) (a): Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage. (b): Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage. (c): Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines. (d): Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines
Carlos earns a gross income of $5,680 per month and applies for a mortgage with a monthly PITI of $1,249.60. Carlos has other financial obligations totaling $994.00 per month. If the lending ratio guidelines are as given in the table below. *table chart* What type of mortgage, if any, would Carlos qualify for? (Choose from below which option Carlos should qualify for.) (a): Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage. (b): Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage. (c): Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines. (d): 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
Section: Chapter Questions
Problem 1PS
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Carlos earns a gross income of $5,680 per month and applies for a mortgage with a monthly PITI of $1,249.60. Carlos has other financial obligations totaling $994.00 per month.
If the lending ratio guidelines are as given in the table below.
*table chart*
What type of mortgage, if any, would Carlos qualify for?
(Choose from below which option Carlos should qualify for.)
(a): Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage.
(b): Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage.
(c): Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines.
(d): Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.
Transcribed Image Text:Lending Ratio Guidelines
Mortgage Type Housing Expense Ratio
Total Obligations Ratio
FHA
29%
41%
Conventional
28%
36%
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