Pre-qualification Interview Summary
Expenses
Item Balance Minimum Payment
credit card debt n/a $400.00
Total n/a $400.00
Gross Monthly Income #1 $4,332.00
Gross Monthly Income #2
Total Gross Monthly Income $4,332.00
Total Annual Income $51,984.00
Debt Ratios Maximum PITI
Front End/Housing 42% $1,819.44
Back End/DTI 45% $1,769.40
Your DTI 9%
Current monthly living expense $700.00
Target Monthly Payment (High) $1,850.00
Target Monthly Payment (Low) $1,450.00
Reserves Amount $100,000.00
# of Monthly Reserves 56.52
Given:
Interest of 6.5%
Closing Costs of 3%
Max. Back End Ratio of 45%
Taxes 1.25%
Hazard Insurance of 0.35%
PMI of 0.65%
P&I as a % of Payment 77.122%
Results: Safest Maximum
Property Price/Loan Amount $220,315.00 $237,857.00
Closing Costs $6,609.00 $7,136.00
Monthly Principal & Interest $1,393.00 $1,503.00
Taxes $229.00 $248.00
Hazard Insurance $64.00 $69.00
Private Mortgage Insurance $119.00 $129.00
PITI (Monthly Mortgage Pmt.) $1,805.00 $1,949.00
Scenarios

What loan amount would give you a $1,769 payment at a given interest rate? By working backwards
with a mortgage calculator we found that:
Loan Amount of : Interest of: Payments of: Term of:
$287,500.00 6.25% $1,769.00 30 years
$280,000.00 6.50% $1,769.00 30 years
$265,900.00 7.00% $1,769.00 30 years
Then, how would we finance a home purchase of
Scenario 1: California Bungalow Single-Family Home
Purchase Price $390,000
Closing Costs $11,700.00
Seller Paid Credits to the Buyer ($10,000.00)
Total Cost to Purchase $391,700
Total Cost to Purchase $391,700
1st Loan Amount $280,000.00
Total Left to Fund $111,700.00
HOP (lesser of 20% or $80k)* $78,000.00 *Here 20% is used to be conservative. However,
ADDI (greater of 6% or $10k) $23,400.00 most areas of Los Angeles County can qualify for
Borrower minimum down pmt. $3,900.00 up to 25%.
Total Additional Financing $105,300.00
What's left to fund? $6,400.00
Use MCC at: Monthly Savings
Interest rate of: $316.88
6.50%
Tax Credit* of: *Here 15% is used to be conservative. However,
15% most areas of Los Angeles County can qualify for
up to 25%.
Target Payment $1,769.40
Reduced Payment* $1,452.53 *Remember, payments only reflect principal and
OR interest.
Boosted Payment* $2,086.28
Increased Purchasing Power of $45,000
Now, what's left to close? $(38,600.00) If negative, what is left is cash back to borrower.
Perhaps use the surplus to buy down mortgage note with points OR
increase purchase price by that amount to buy more home.
Scenario 2: Chic Condo
Purchase Price $303,547.70
Closing Costs $9,106.43

Seller Paid Credits to Buyer (6,829.82)
HOA Fees (monthly) $155.00
Total Cost to Purchase $305,824.31
Total Cost to Purchase $305,824.31
1st Loan Amount $280,000.00
Total Left to Fund $25,824.31
Extra Credit Teacher Program $9,106.43
Borrower down payment (min.) $3,035.48
SCFHA (4% of 1st loan amount) $11,200.00
Total Additional Financing $23,341.91
What's left to fund? $2,482.40 If negative, what is left is cash back to borrower.
Perhaps use the surplus to buy down mortgage note with points OR
increase purchase price by that amount to buy more home.
Use MMC at: Monthly Savings
Interest rate of: $246.63
6.50%
Tax Credit* of:
15%
Target Payment $1,769.40
Reduced Payment* $1,522.77 *Remember, payment only reflects principal and
OR interest.Monthly HOA fee NOT included.
Boosted Payment* $2,016.03 High. However, with an Interest Only CalHFA
loan for 5 years, you would have a 5 year buffer time
to increase total household income and lower payment.
Increased Purchasing Power of $39,000.00