Real Estate Math

A Washington buyer has a gross monthly income of $11,000. Maximum allowed housing ratio is 28% and total DTI is 43%. They have $800/month in other debt. What is the maximum PITI?

A$3,008
B$3,930✓ Correct
C$3,230
D$3,880

Explanation

Housing ratio limit = $11,000 × 28% = $3,080. DTI limit for housing = $11,000 × 43% − $800 = $4,730 − $800 = $3,930. The more restrictive limit is $3,080.

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