Qualifying for both “Conventional” and
“Government” Loans Based on Income, Debt,
and Expenses — No Tax/Insurance
Given a buyer’s annual income of
$36,000, $500/month in long-term debts,
monthly heating expense of $50, an
interest rate of 7.25% and a 25 year term,
what size conventional loan can he qual-
ify for if using 32:40
ratios
? What size
government loan if using 29%:41%
ratios? (Use
[Qual 1]
for conventional
qualifying;
[Qual 2]
for government
qualifying.) Find the monthly payment
for each.
Steps/Keystrokes
Display
1. Clear calculator:
[On/C] [On/C]
0.00
2. Enter annual income and monthly debts:
36,000 [Inc]
36,00.00
500 [Debt]
500.00
3. Enter monthly heating expenses then
interest and term:
50 [Exp]
50.00
7.25 [Int]
CdA 7.25
25 [Term]
25.00
Continued on the next page
➟
User’s Guide — 47
