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 GuidelinesmeMortgage Type Housing Expense RatioFHAConventionalmit Answeras given in the table below.DETAILSmarginettlementppraisalquity29%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 RatioPREVIOUS ANSWERS41%36%BRECMBC9 14.II.TB.001.$1,227.60. Carlos has oloan is a lump-sum second mortgage loan made on the available equity in a home.

We have to first calculate the ratios of his housing expense to gross income and his total…

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.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 4FPE

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Question

-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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