Calculated Industries 3442 - Manual (Page 62)

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“Unrestricted” Qualifying
The amount calculated in the previous example is the loan they may
qualify for, based on current income and debt. What are the buyer’s
actual income and debt ratios? What does the “unrestricted” loan
amount calculate to, and which side is it based on (i.e., buyer’s
income or debt)? What is the buyer’s maximum allowable debt?
STEPS KEYSTROKES DISPLAY
Find actual ratios q “run” 22.76-36.00
Find “unrestricted”
loan amount q 170,870.75 LA INC*
Find allowable debt q 453.33
*The “INC” tells you this unrestricted Qualifying Loan Amount is based on the buyer’s
Income Ratio — therefore, the restrictive Qualifying Loan Amount is based on the
buyer’s Debt Ratio. This means that if they pay off their monthly debt (to $453/mo. or
lower) they may qualify for a mortgage loan of approx. $170,000 or more and afford
that $175,000 home (if they put approx. $4-$5K down).