Marianne earns 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 b. FHA and Conventional c. Conventional only d. none

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**Step 1. Calculate Marianne's housing ratio (front-end ratio):**  
Marianne's monthly gross income is $$5500$$ dollars, and her monthly PITI is $$1244$$ dollars.

$$
\text{Housing Ratio} = \frac{1244}{5500} \approx 0.2262 \text{ or } 22.62\%
$$

**Step 2. Calculate Marianne's total debt-to-income ratio (back-end ratio):**  
In addition to the PITI, Marianne has other obligations of $$829$$ dollars per month. Therefore, her total monthly debt is:

$$
1244 + 829 = 2073 \text{ dollars}
$$

Now, her total debt-to-income ratio is:

$$
\text{Total DTI} = \frac{2073}{5500} \approx 0.3778 \text{ or } 37.78\%
$$

**Step 3. Compare with typical mortgage guidelines:**  
Common guidelines are:  
- **FHA loans:** A maximum housing ratio of about $$31\%$$ and a total DTI of around $$43\%$$.  
- **Conventional loans:** Often use similar or slightly stricter criteria.

Marianne's ratios are:  
- Housing ratio: $$22.62\%$$ (well below the $$31\%$$ limit)  
- Total DTI: $$37.78\%$$ (below the $$43\%$$ limit)

Both of these ratios fall within the acceptable limits for both FHA and Conventional guidelines.

**Conclusion:**  
Marianne qualifies for both FHA and Conventional mortgage options.

**Answer: b. FHA and Conventional**
Marianne qualifies for both FHA and Conventional mortgages.

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