David and Mary smith together earn $54,000 per year, David and Mary would like to buy a home for $200,000. They have one child. The new mortgage is $160,000 at 6 1/4 for 30 years for $985.15 per month. Annual property taxes are $1,800 and insurance on the home will cost $600 per year. They have enough cash for the down payment and closing costs. Total consumer debt payments are $650 per month. > >
A) what is the maximum percentage of monthly mortgage payment to total monthly income required for conventional mortgage loan qualifications? > >
B) what is the maximum percentage of the mortgage payment plus total consumer debt obligations allowed per month to qualify for conventional home mortgage? > >
C) do they meet the two ratio requirements to obtain conventional home mortgage financing approval?