FinancingCoop_financing_share_loansHARD
Diana is purchasing a co-op for $900,000 with a 75% share loan. The monthly maintenance fee is $1,850, and her share loan payment will be $3,200 per month. If the co-op board requires a maximum debt-to-income ratio of 30%, what minimum monthly gross income must Diana have to qualify?
Correct Answer
A) $16,833
Total monthly housing payment = $3,200 (loan) + $1,850 (maintenance) = $5,050. Required income = $5,050 ÷ 0.30 = $16,833.33, rounded to $16,833. The debt-to-income ratio includes both loan payments and maintenance fees.
Answer Options
A
$16,833B
$15,500C
$18,200D
$20,000Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Financing Question
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Background Knowledge for Financing
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Related Topics & Key Terms
Key Terms:
debt_to_incomemaintenance_feesincome_qualificationcoop_board_requirements
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