User Guide

SER’S GUIDE — 13

(Cont’d)

DEBT RATIO =

TOTAL HOUSING EXPENSE + MO. DEBT

GROSS MONTHLY INCOME

Note: Typically, when figuring government loans (FHA/VA), these

formulas also include estimated expenses for maintenance and

utilities (added to the Total Housing Expense for both ratios).

Also, real estate financing and qualifying varies per region and by

lender, who of course, take other factors into consideration, such

as a buyer’s credit and employment history.

2) Calculates the maximum loan amount for

which a buyer may qualify, based on the stored

income and debt qualifying ratios and the entered:

• term

• interest

• annual income

• monthly debt

—and optional—

• annual property tax and insurance

• annual mortgage insurance (Mortgage Insurance

or MI)

• other monthly housing expenses (e.g., home-

owner’s association dues)

The output of this key is as follows:

Press Display or Calculation

1 Displays stored Qualifying Ratios (e.g.,

28%-36%)

2 Restricted/Maximum Qualifying Loan

Amount *

3 Buyer’s Actual Ratios (Income%:Debt%)

4 Unrestricted Qualifying Loan Amount *

5 Maximum Allowable Debt

(Cont’d)