Real Estate Math

A Texas buyer qualifies for a maximum total debt-to-income ratio of 43%. Gross monthly income is $6,500. Current monthly debts (car, student loans) total $800. What is the maximum monthly housing payment (PITI) the buyer can qualify for?

A$1,995✓ Correct

B$2,795

C$2,000

D$1,600

Explanation

Maximum total monthly debt = $6,500 × 43% = $2,795. Existing debts = $800. Maximum housing payment = $2,795 – $800 = $1,995.

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