Questions 3-5 stem from question 2. Please answer questions 2-5.

Mr. and Mrs. A are considering a home purchase. Mr. A's gross monthly income is $6,000 and Mrs. A's is $4,000. They have some monthly debt payments as follows: $350 for a car, $100 for furniture, $1,200 for student debt and $500 for credit cards. The annual property taxes and insurance premium are estimated to be about $1,800. They want to use a 10% down payment. What is the highest home price they can target? Given the standard loan is 30 -year and the current interest rate is 8.125%. Question 3: What are the MDR and TDR for Mr. and Mrs. A in Question 2? With their ratios, would they qualify for an FHA-insured loan? Would they qualify for a conventional loan? Question 4: If Mr. and Mrs. A decide to go with a conventional loan, would they be required to get a private mortgage insurance policy? Why/ Why not? Question 5: A commercial mortgage has an estimated monthly payment of $10,000. How much would this property need to generate per month for the application to be approved