Real Estate Finance Math Problems Test Review Questions with correct Answers

rita & henry have been told that the monthly payment of PITI on the home that they have selected to purchase is $1507. if area lender are qualifying at 28%, what gross monthly income must they show to qualify? - ANSWER-PITI $1507/month qualifying ratio 28% $1507 / 28% = $5382.14 $5382.14 if the Wus decide to buy a $250,000 home with an FHA loan, what is the minimum amount of money they would be needed to put down? - ANSWER-Home $250,000 FHA downpayment rate 3.5% $250,000 x 3.5% = $8750 $8750 agent sidney is representing an investor buyer alfonso who is looking at a single family home to buy. alfonso wants to lease the property after buying it and asked sidney to analyze the of the property. sidney believes after analysis the property will lease for $1400/month. similar homes in the area sold for $225,500 and usually leases for $1250/month. what is the GRM (gross rent multiplier) for the similar homes in this neighborhood? - ANSWER-GRM = average sales price / avg rent similar homes in the area sold for: $225,000 similar homes in the area usually leases for: $1250/month