A family wants to buy their first home and needs to know how much they can afford under the various

mortgage loan programs offered. They have good credit with a FICO score of $700.$ The family makes a

combined gross income of $$75,000$ per year. They estimate that taxes on the home they want will be

$$300$ per month, insurance $$150$ per month and HOA fees $$20$ per month. Their other loan payment

obligations are $$450$ per month for car payments, $$150$ per month for student loan payments and $$50$

per month for credit card payments. They estimate that their other housing and general living expenses

are $$500$ per month for utilities, $$250$ per month for maintenance and $$1,000$ per month for general

living expenses.

$1.$ What is the maximum home price they can afford if they obtain a FHA $/$ HUD loan for $30$ years at

a $7\mathrm{.}5\%$ rate at $90\%$ LTV $?$

$2.$ What is the maximum loan amount they can get on FHA $/$ HUD loan for $30$ years at a $7\mathrm{.}5\%$ rate at

$90\%$ LTV $?$

$3.$ What is the maximum loan amount they can get on a Conventional Loan $($Fannie & Freddie$)$ for

$30$ years at a $7\mathrm{.}00\%$ rate at $80\%$ LTV $?$

$4.$ What is the maximum home price they can afford if they obtain a Conventional Loan $($Fannie &

Freddie$)$ for $30$ years at a $7\mathrm{.}00\%$ rate at $80\%$ LTV $?$

$5.$ If one of the family members is a vet, what is maximum home price they can afford if they obtain

a VA Loan for $30$ years at $7\mathrm{.}00\%$ at $100\%$ LTV $?$