Example \#1 Bob \& Bobbi would like to buy a home. Bob makes $10.50 per hour and works a normal 40 hour workweek. Bobbi grosses $350.00 per week. Calculate their monthly income: Bob Bobbi Total Now, let's look at their monthly debts. Theyhave:CreditCardCreditCardCarPayment$45.00$25.00(balanceof$625.00)$210.00(balanceof$1,200.00)Willbepaidoffin26months of monthly payment that Bobbi \& Bob will qualify? 28% 36% Maximum House Payment $ Example \#2 Ken \& Kerri would like to see how much they qualify for to buy a home. Both think they have great jobs. Ken makes $14.25. He works part-time and can prove through his paystubs that he works 36 hours per week and has for the past 2 years although his company will only guarantee 30 hours.. Kerri works as a receptionist and makes $575 per week. Calculate their monthly income: Ken Kerri Total Now, let's look at their monthly debts. They have: Car Payment $225.00 It's almost paid off 6 payments remain Truck Payment $340.00 Credit Card $60.00 (balance of $1,950.00 ) Kohl's Card $40.00 (balance of $800.00 ) Using the basic qualifying ratio for FHA mortgages (31/43%), what is the amount of monthly payment that Ken \& Kerri will qualify? 31%. 43% Maximum House Payment \$ Example \#3 Tom \& Tina have hopes of buying a larger home, as they have three children and just found out they're expecting a 4th. They have been employed with the same employers for a number of years and have a pretty good income. Tom has been in the military and qualifies for a VA loan. Tom makes $20.50. He works a 40 hour work week. Tina has a great job, making $33.15 per hour as a supervisor, working 40 hours per week. Calculate their monthly income: Tom Tina Total Here's a They ha Using the basic qualifying ratio for VA mortgages (41\%), what is the amount of monthly payment that Tom \& Tina will qualify? 41% Maximum House Payment \$ If they sell their current home, how does that change the ratios?? 41% Maximum House Payment $ Now we must consider RESIDUAL INCOME