For Bryan and Carla to qualify for their monthly payment of $1780 and long-term debt of $630, how much monthly income must they have with qualifying ratios of 28%/36%?

To determine how much monthly income Bryan and Carla need to qualify for their loan based on the qualifying ratios of 28% for housing expenses and 36% for total debt, we first need to calculate the necessary income for each ratio.

1. Housing Expenses Ratio (28%): This indicates that no more than 28% of their gross monthly income can go towards housing costs, which in this case is the monthly payment of $1780.

• To find the necessary income based on this ratio, we use the formula:

[

\text{Required Income for Housing} = \frac{\text{Monthly Payment}}{\text{Housing Expense Ratio}}

]

• Plugging in the numbers:

[

\text{Required Income for Housing} = \frac{1780}{0.28} \approx 6342.86

]

2. Total Debt Ratio (36%): This means that the total monthly debt payments, which include the housing payment and other debts (in this case, long-term debt of $630), should not exceed 36% of their gross monthly income.

• To determine the total monthly debt obligations:

[

\text{