U
SER’S GUIDE — 63
(Cont’d)
“Unrestricted” Qualifying
The amount calculated in the previous example is the loan they may
qualify for, based on current income and debt and the standard
28%-36% qualifying ratios. 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 maximum allowable
monthly Debt q 453.33**
*Note: The “INC” tells you this unrestricted Qualifying Loan Amount is based on the
buyer’s Income Ratio — therefore, the restricted Qualifying Loan Amount is based on
the buyer’s Debt Ratio. This means that if they pay off their monthly debt to $453/month
or lower (as seen in “allowable debt” calculation**), they may qualify for a mortgage
of approximately $170,000 or more and the $175,000 home (putting approximately
$4-$5K down).
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