Below is the worksheet Joe and Teresa
Ramirez filled out with the help of a counselor at their
local community housing organization. They don’t yet
have a lot of money saved. The small “starter”
houses their friends have bought cost at least $50,000.
They would love to own a home. But they are worried their
debts might be too high to allow them to qualify for a loan.
They are still paying off car loans and they charge a lot
on their credit cards. Because their son and daughter are
both young, they know their child care costs will continue
to be high for several more years. Look at their worksheet.
Do you think they will qualify for the loan they want?
Example 2
Joe and Teresa Ramirez
Home Mortgage Qualifying Worksheet
Joe Ramirez’s
gross annual salary
$17,400
Teresa Ramirez’s
gross annual salary
10,800
Joe’s overtime
and bonuses
1,800
Total gross annual
salary
30,000
Total monthly income
( $30,000 divided by 12)
2,500
Monthly gross income
2,500
Multiply by 28%
x .28
Allowable monthly
housing costs
700
Home purchase price
53,000
Down payment
3,000
Mortgage loan amount
50,000
30-year, $50,000 loan
at 8% interest—monthly payment
(See this page for more information)
