66 — Q
UALIFIER
P
LUS
®
4
X
“Restricted” Qualifying
Buyers who make $68,000 annually and have $750 in long-term
monthly debt wish to buy a home offered at $175,000. They can only
afford $5,000 for the down payment. For what maximum loan
amount can they qualify?
(Use previously stored 7.5% interest, 30-
year term, Tax/Ins./MI rates of 1.5%, .25% and 0.6%, respectively,
and qualifying ratios of 28%:36%. Re-enter $50 association dues
and $5,000 down.)
Note: If you’re not continuing from the previous example, you’ll need to enter Qualifying
Ratios (enter
2 8 : 3 6 q
), as well as interest, term, tax and insurance.
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Recall Interest
® ˆ
7.50
Recall Term
® T
30.00
Recall annual property
Tax rate
® t
1.50
Recall annual property
Insurance rate
® s t
0.25
Re-enter annual MI rate
• 6 s 9
0.60
Re-enter assn. dues
5 0 s D
50.00
Enter Down Payment
5 ) d
5,000.00
Enter annual Income
6 8 ) i
68,000.00
Enter monthly Debt
7 5 0 D
750.00
Display Qualifying Ratios
q
28.00-36.00
Find “restricted” Qualifying
Loan Amount
q
“run” 137,725.41
— DO NOT CLEAR CALCULATOR —
“Unrestricted” Qualifying
The amount calculated on the previous page 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 (e.g., 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
UNR 170,870.75
LA INC
*
Find allowable Debt
q
ALW 453.33
MO DEBT
(Cont’d)
