Mariarne carns a gross income of \( \$ 5,500 \) per month and applies for a mortgage with a monthly PITI of \( \$ 1,244 \). Mia has other financial obligations totaling \( \$ 829 \) per month. (Use the ratio guidelines on page 468 .) What type of mortgage, if any, would Mirianne qualify for? Select one: a. FHA only

To determine the type of mortgage that Mirianne would qualify for, we need to calculate her debt-to-income (DTI) ratio. The DTI ratio is calculated by dividing the total monthly debt payments by the gross income. Given: - Gross income: $5,500 per month - Monthly PITI (Principal, Interest, Taxes, and Insurance): $1,244 - Other financial obligations: $829 per month First, let's calculate the total monthly debt payments: Total monthly debt payments = Monthly PITI + Other financial obligations Total monthly debt payments = $1,244 + $829 Total monthly debt payments = $2,073 Next, we calculate the DTI ratio: DTI ratio = Total monthly debt payments / Gross income DTI ratio = $2,073 / $5,500 Now, we can determine the type of mortgage that Mirianne would qualify for based on the DTI ratio. If the DTI ratio is less than or equal to 31%, she would qualify for a conventional mortgage. If the DTI ratio is greater than 31% but less than or equal to 43%, she would qualify for an FHA mortgage. If the DTI ratio is greater than 43%, she would not qualify for any mortgage. Let's calculate the DTI ratio and determine the type of mortgage that Mirianne would qualify for. Calculate the value by following steps: - step0: Calculate: \(\frac{2073}{5500}\) The DTI ratio is approximately 0.3769. Based on the DTI ratio, Mirianne would qualify for an FHA mortgage since her DTI ratio is less than 43%.