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A potential FHA borrower’s monthly housing expense is $504, the total monthly gross income is $1,800, and the total monthly obligations are $648. What is the monthly HER for the borrower?

User YoavKlein
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Final answer:

The monthly Housing Expense Ratio (HER) for the FHA borrower is 28%, calculated by dividing the monthly housing expense of $504 by the total monthly gross income of $1,800.

Step-by-step explanation:

To calculate the Housing Expense Ratio (HER) for the FHA borrower, we divide the monthly housing expense by the borrower's total monthly gross income. The monthly housing expense is $504, and the total monthly gross income is $1,800.

HER = Monthly Housing Expense / Total Monthly Gross Income = $504 / $1,800 = 0.28.

To express this ratio as a percentage, we multiply by 100. Therefore, the HER for the borrower is 28%.

User Fredrika
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