Question

Rimi currently earns $3300 per month. She has the following monthly debt payment expenses: $80 for credit cards, $130 for student loans, and a $215 car payment. She is looking to buy a house. The monthly mortgage, including principal, insurance, taxes, and insurance is $1221. Does Rimi pass the FHA total fixed payments to income ratio requirement

Answer 1

No, her ratio is greater than 37%

Step-by-step explanation:

Given:

Monthly income = $3,300

Credit card expenses = $80

Student loan expenses = $130

Car payment = $215

All insurances = $1,221

Computation:

Total debt to income ratio = Total debt / Total income

Total debt to income ratio = (80 + 130 + 215 + 1221) / 3300

Total debt to income ratio = 49.87%

Housing payments to income ratio = All insurances / Monthly income

Housing payments to income ratio = (1221) / 3300

Housing payments to income ratio = 37%

No, her ratio is greater than 37%