Problem: Your cousin and her partner have a combined gross income of $10,200 and monthly expenses totaling $3,255. They plan to buy a house with a mortgage whose monthly PITI will be $2,100.

(a) What is your cousin and her partner's combined housing expense ratio?

(b) What is their total obligations ratio?

(c) For what kind of mortgage can they qualify, if any?

(d) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)