Real Estate Math
A Northern Virginia condo HOA charges $350/month. The buyer's lender includes the HOA fee in the debt-to-income calculation. If the buyer's gross monthly income is $8,000 and maximum DTI is 43%, what is the maximum total monthly debt allowed?
A$2,800
B$3,440✓ Correct
C$3,760
D$4,000
Explanation
Maximum total monthly debt = $8,000 × 43% = $3,440. All debts, including the $350 HOA fee, the mortgage PITI, and other obligations, must fit within this limit.
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