if your monthly net pay is $1500 what is the recommended FHA minimum
I need help with my homework ughhhhhhhh
Since this is not my area of expertise, I searched Google under the key words "FHA minimum" to get this:
http://www.google.com/search?client=safari&rls=en&q=FHA+minimum&ie=UTF-8&oe=UTF-8
In the future, you can find the information you desire more quickly, if you use appropriate key words to do your own search. Also see http://hanlib.sou.edu/searchtools/.
First, if you have a question, it is much better to put it in as a separate post in <Post a New Question> rather than attaching it to a previous question, where it is more likely to be overlooked.
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To determine the recommended Federal Housing Administration (FHA) minimum, you need to consider your monthly net pay and your ability to manage your housing expenses. The FHA recommends that your total mortgage payment (including principal, interest, property taxes, and insurance) should not exceed 31% of your gross monthly income.
To calculate the recommended FHA minimum for your monthly net pay of $1500, you need to follow these steps:
Step 1: Determine your gross monthly income
To calculate your gross monthly income, you can use a simple formula. Multiply your net pay by 100% plus your estimated tax rate. The tax rate can vary depending on your country and other factors; if you're unsure, you can consider using an average tax rate of around 20%.
In this case, assuming a tax rate of 20%, the calculation would be:
Gross Monthly Income = $1500 / (1 - 20%) = $1500 / 0.8 = $1875
Step 2: Calculate the recommended FHA minimum
Multiply your gross monthly income by 31% to determine the recommended FHA minimum.
Recommended FHA Minimum = Gross Monthly Income x 31%
= $1875 x 31%
= $581.25
According to the FHA guidelines, it's recommended that your mortgage payment should be no more than $581.25 per month.
Keep in mind that there may be additional factors to consider, such as your other monthly expenses and debts, when determining your maximum housing budget. It's always a good idea to consult with a mortgage professional or financial advisor for personalized advice.