And buyer has a proposed monthly mortgage payment of $1,300, a monthly car payment of $350, a monthly student loan payment of $200, and a monthly income of $4,800. He is applying for a conventional loan that allows a 28% housing expense to income ratio with a 36% debit to income ratio. Which of the following is true?
A. Both housing expenses and debit to income ratios are acceptable
B. Housing expenses to income ratio is acceptable, but debit to income ratio is not acceptable
C. Debit to income ratio is acceptable, but housing expenses to income ratio is not acceptable
D. Neither housing expenses nor debit to income ratio is acceptable
Answer: B. Housing expenses to income ratio is acceptable, but debit to income ratio is not acceptable
You might also like to view...
The failure to properly record an adjusting entry to accrue a revenue item will result in an:
a. understatement of revenues and an understatement of liabilities. b. overstatement of revenues and an overstatement of liabilities. c. overstatement of revenues and an overstatement of assets. d. understatement of revenues and an understatement of assets.
Horizontal conflicts are conflicts between different levels of the same channel
Indicate whether the statement is true or false