Narrative 14-2
for Problems in This Section, Use Table 14-1

Narrative 14-2
For problems in this section, use Table 14-1 from your text to find monthly mortgage payments.
-Refer to Narrative in your text 14-2. Daniel earns a gross income of $3,590 per month and applies for a mortgage with a monthly PITI of $765.63. David has other financial obligations totaling $363.17 per month. If the lending ratio guidelines are as given in the table below, what type of mortgage, if any, would Daniel qualify for? $$\begin{array} { | l | l | l | } \hline \text { Mortgage Type } & \text { Housing Expense Ratio } & \text { Total Obligations Ratio } \\\hline \text { FHA } & 29 \% & 41 \% \\\hline \text { Conventional } & 28 \% & 36 \% \\\hline\end{array}$$