Carlos earns a gross income of $5,680 per month and applies for a mortgage with a monthly PITI of $1,476.80. Carlos has other financial obligations totaling $675.92 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? 1. Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage 2. Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage. 3. Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines. 4. 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 $1,476.80. Carlos has other financial obligations totaling $675.92 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? 1. Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage 2. Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage. 3. Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines. 4. 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 $1,476.80. Carlos has other financial obligations totaling $675.92 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?
1. Carlos qualifies for an FHA mortgage under the lending guidelines, but not a conventional mortgage
2. Carlos qualifies for a conventional mortgage under the lending guidelines, but not an FHA mortgage.
3. Carlos qualifies for both an FHA mortgage and a conventional mortgage under the lending guidelines.
4. Carlos qualifies for neither an FHA mortgage and a conventional mortgage under the lending guidelines.
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