Conforming Loan This Case study is 25% of your grade. Do Case 2 and submit by 11:59 pm on 04/15. Case 2: Using the information provided below and the “Conforming Loan Qualification” form (refer to...

It's a case study


Conforming Loan This Case study is 25% of your grade.   Do Case 2 and submit by 11:59 pm on 04/15.  Case 2: Using the information provided below and the “Conforming Loan Qualification” form (refer to page 313 in your book or refer to template provided), determine if these borrowers (Mr. Jones and Mrs. Jones)  would qualify for the loan that they are applying for.  Assume ALL costs under Housing Costs are required costs and are considered part of the Mortgage payment and thus include these in the front-end and back-end ratio calculations, Ratios: Front-end HUD ceiling 31% Back-end HUD ceiling 43% Please explain your conclusions in 3-4 paragraphs. Be sure to explain your thought process, observations, conclusions and recommendations.  No more than 4 paragraphs. Be sure to number your paragraphs, write using well written sentences, and ensure your spelling is correct.  You may submit in Excel and/or Word.   Mr. Jones and Mrs. Jones Case Study Facts:   Applying for:             $80,000 loan,  @ 6%,  30 yrs,  $479.64 per month   Income:          Borrower:        $1,500/mo, FIT - $184, State - $45, SS Tax - $107                         Co-Borrower   $1,600/mo, FIT - $196, State - $48, SS Tax - $114   Housing Costs:                       Monthly Payments               Property Tax:                          $100                            Insurance:                                $ 50             Utilities:                                  $160             Mortgage Insurance:               $ 20             Maintenance:                           $ 45             Homeowners Assessment:      $ 30   Fixed Obligations:                 Monthly Payments   Health Insurance:                    $ 45 Child Care:                              $ 95 GMAC: (owes $3,230)           $170 Mastercard: (owes $620)        $ 45 Citibank Visa: (owes $510)    $ 35     Conforming Loan Qualification Worksheet Loan Amount $80,000 Rate 6% Term 30yrs P & I _________ Borrower Co-Borrower Total Gross Monthly Income (GMI) $1,500/mo. $1,600/mo. $3,100 Housing Costs - Monthly P & I ____________________ Property Taxes $ 100 Hazard Insurance $ 50 Homeowners Assoc Dues $ 30 Other (PMI) ____________________ Total Housing Cost ____________________ Ratio (Divided by GMI) ____________________ Maximum of 28% Total Debt Ratio Total Housing Costs Installment Obligations ____________________ Revolving Accounts ____________________ Child Care/Support $ 95 Other Recurring Charges ____________________ Total Monthly Debt ____________________ Ratio (Divided by GMI) ____________________ Maximum of 36%