sam makes 45k a year and angie 50k a year and they want to buy a house for 430,000. They have good credit. There monthly payments are 200 for student loans, and 250 for car payments. Balance of student loans is 40,000. Insurance will cost 900 per year on house. Property taxes 1.25% of purchase price per year. Monthly mortgage insurance required if down payment less than 20%. On top of prepaid finance charges they also have closing costs of 3000.
They can get approval is housing ratio is less than 33% and total debt to income ratio is less than 40%. Do they qualify for the following scenario?
1. Fixed 30 year loan at 4% for 80% of the purchase price. Prepaid finance charges will be 1500 plus 1 point on loan.
Read more: Can I afford to buy this house with this finance scenario?
