SOLUTION: Factors for Loan qualification: 1.Front-end ratio should not exceed Conventional VA FHA

Question 78662: Factors for Loan qualification:
1.Front-end ratio should not exceed Conventional VA FHA

0.28 N/A 0.29
2.Back-end ratio should not exceed 0.36 0.41 0.41
3.Credit Score should be 650 or higher.
Suppose a family has a gross monthly income of $2229. What is the maximum monthly debt payment that would meet the back-end ratio qualification for a conventional loan?
A)$646.41
B)$913.89
C)$802.44
D)$624.12
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
max month debt payment = (back-end ratio)*(gross monthly income)
mmdp = 0.36*2229= $802.44
===========
Cheers,
Stan H.
RELATED QUESTIONS
MAKING FURNITURE: A WOODWORKER WANTS TO PUT TWO PARTITIONS CROSSWISE IN A DRAWER THAT IS... (answered by Theo)

Two blends of tea costing sh. 140 and sh. 160 per kg respectively are mixed in the ratio... (answered by josgarithmetic,Theo,mananth)

Business Loan: The owner of a clothing store borrows $5,020 for 1 year at 15.5% interest. (answered by solver91311)

a trader sales a bag of beans for sh.2,100.00 and that of maize for sh.1,200.00. he mixed (answered by ikleyn)

I am having troubles understanding this question, not quite sure how to get started, or... (answered by lynnlo)

Coal is carried from a mine in West Virginia to a power plant in New York in hopper cars... (answered by CPhill)

Which should come next at the end of this series of numbers: 1, 2, 0, 3,... (answered by Fombitz)

ver wonder how much a house �actually� costs? Consider Alex and Sabrina who purchased a... (answered by solver91311)

in a quadratic equation lx^2+nx+n=0 if ratio of roots is p:q then proof (p/q)^(1/2) +... (answered by Edwin McCravy)