You have found a home you wish to purchase. The PITI (i.e., monthly payments) on the mortgage you have applied for is $1425.00 per month. You gross monthly income is $4,750.00 per month and your car payments are only $150 for the next 4 years since you paid the majority of the price of the car in cash, and you have no credit card debt. Additionally, you only have $10,000 to put down on the property. 250 words

Access the formulas for calculating the housing expense ratio and debt-to-income ratio

• Calculate your housing expense ratio and the debt-to-income ratio.
• Would you qualify for a conventional loan? Why or why not? Provide both ratios and your reasoning.