Mr$.$ and Mrs$.$ Vargas are looking for a home they want to be pre$-$qualified for the loan. Together they

earn $$150,000$ annually and have saved $$20,000$ for down payment. Their current car debt of $$1000$ a

month for two more years and a master card with minimum payment of $$375.$ They have three children

and are looking for good schools and since they both work in downtown McAllen they want a maximum

commute time of $25$ minutes. They want a home with good resale value and they plan to live in the

home for at least $10$ years. They are looking for a $1800$ to $2500$ sq ft$.$ home with four bedrooms and a

fenced backyard. They are also worried about security. They also don$$t want a high house payment.

$1)$ Based on the following criteria to determine the maximum that the Vargas can borrow $($Assume

property taxes of $4\%$ and home insurance of $$1200).$ What is the maximum loan amount they can

qualify for assume a $$15,000$ down payment. Using the internet find the appropriate loan assuming a

credit score of $750.$

Loan to value ratio of $90\%$

Maximum mortgage payment to income ratio is $28\%$

Maximum income to mortgage, property taxes, Insurance and mortgage insurance $30\%$

Maximum income to all housing expense to all housing expenses and obligations $36\%$