Jamie and Alice Newmark have a combined monthly gross income of $9,604 and monthly financial obligations totaling $2,911. They plan to buy a home with a mortgage whose monthly PITI will be $2,006.

(a) What is Jamie and Alice's combined housing expense ratio (in %)? (Round your answer to the nearest tenth of a percent.)

______ %

(b) What is their total obligations ratio (in %)? (Round your answer to the nearest tenth of a percent.)

______ %

(c) What kind(s) of mortgage can they qualify for, if any?

A. They can qualify for a conventional mortgage under the lending guidelines, but not an FHA mortgage.

B. They can qualify for an FHA mortgage under the lending guidelines, but not a conventional mortgage.

C. They can qualify for both a conventional mortgage and an FHA mortgage under the lending guidelines.

D.They can qualify for neither a conventional mortgage nor an FHA mortgage under the lending guidelines.

(d)By how much (in $) would they need to reduce their monthly financial obligations in order to qualify for an FHA mortgage?

$ _____