Calculated Industries 3420 User Guide - Manual (Page 51)

50 — Q UALIFIER P LUS ® III X
(Cont’d)
“Unrestricted” Qualifying
The amount calculated above is the “restricted” mortgage they may
qualify for, based on current income and debt. What are the buyer's
actual income and debt ratios? What is the “unrestricted” mortgage
amount? What side is the “restricted” mortgage based on (income or
debt)? What is the total allowable monthly debt?
STEPS KEYSTROKES DISPLAY
Find actual Ratios q q q “run” 32.00-34.00*
Find “unrestricted”
Mortgage Amount q UNR 150,805.75 LA DEBT **
Find maximum allowable
Debt q ALW 300.00 MO DEBT *
Clear Tax register 0 t 0.00
*The unrestricted debt ratio was only 34% (did not reach TDS ratio of 40%).
Maximum allowable debt limited by these ratios is $300, meaning the buyers could
have $300/month in long-term debt and still qualify for a lower-priced $147,000 home.
**The “UNR” in the top of the display and “DEBT” in the lower right tells you this unre-
stricted Mortgage Amount is based on the buyer’s Debt Ratio — therefore, the
restricted Qualifying Mortgage Amount is based on the buyer’s Income Ratio.
The restricted Qualifying Mortgage Amount is based on the ratio (income or debt) that
limits the buyer the most — in this case it was income (i.e., monthly income of $3,750
multiplied by 32% allows a total payment of only $1,200). This means the buyers
need to make more income to qualify for a larger loan, if they want to purchase a
higher-priced home. In other words, they do not currently qualify for the desired
$165,000 home because their current income is slightly too low. If they increase their
income only $5K annually to $50,000/year, they’d qualify for a $140,000 mortgage
(versus $125K) and may look at homes priced at around $165K.
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