Bob is a twenty-eight year old unmarried man and the assistant manager of a grocery store. For the past five years he's been a volunteer firefighter, which he trained for when he was in the Navy. He...

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Bob is a twenty-eight year old unmarried man and the assistant manager of a grocery store. For the past five years he's been a volunteer firefighter, which he trained for when he was in the Navy. He is really proud of his condo, and is happy he'll have his big screen TV paid off in a couple months because he wants to buy a new laptop computer. He jokes about working at the grocery store just to get his employee discount because his Great Dane eats about $50 worth of dog food a week! Bob has the following monthly income and expenses: Gross monthly income: $5,300 Monthly principal and interest (including any PMI) $1,270 Monthly homeowners association fee $100 Annual property taxes $3,278 Annual homeowners insurance $650 Monthly auto payment $295 Semi-annual auto insurance $700 Average monthly gasoline expense $200 Monthly installment payment on the TV $97 Average monthly utilities $250 Monthly Internet/phone/cable TV $200 Bruno's dog food and tennis balls $250 Assignment Questions: 1. What is Bob's housing (front end) ratio? Show how you calculated this. 2. What is his debt-to-income (back end) ratio? Show how you calculated this. Without considering any compensating factors... 3. What is the maximum allowable housing ratio for a conforming loan? 4. What is the maximum allowable debt-to-income ratio for a conforming loan? 5. What is the maximum allowable housing ratio for an FHA loan? 6. What is the maximum allowable debt-to-income ratio for an FHA loan? 7. What is the maximum allowable debt-to-income ratio for a VA loan? 8. Which of these three types of loans does Bob qualify for?

Answered Same Day Dec 24, 2021

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Robert answered on Dec 24 2021

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Bob is a twenty-eight year old unmarried man and the assistant manager of a grocery store. For the past five years he's been a volunteer firefighter, which he trained for when he was in the Navy. He...

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