Final answer:
Considering the down payment, savings, and debt-to-income ratio, Person A is rated the highest on their eligibility for a home loan due to having enough savings to cover the down payment and the lowest debt-to-income ratio among the candidates.
Step-by-step explanation:
To determine which person would be rated the highest on their eligibility for a home loan, we should consider the down payment, debt-to-income ratio, and savings. The lender requires a 15% down payment. For each person, we calculate the down payment and determine if their savings cover it, and then calculate the debt-to-income ratio to see if they can handle the monthly payments.
Person A: Down payment = 15% of $95,000 = $14,250. Savings = $20,000, which covers the down payment. Monthly debt-to-income ratio = ($310/$46,000)*12 = 8.09%.
Person B: Down payment = 15% of $107,000 = $16,050. Savings = $13,910, which does not cover the down payment. Monthly debt-to-income ratio = ($198/$53,000)*12 = 4.48%.
Person C: Down payment = 15% of $120,000 = $18,000. Savings = $18,000, which exactly covers the down payment. Monthly debt-to-income ratio = ($265/$58,000)*12 = 5.49%.
Person D: Down payment = 15% of $128,000 = $19,200. Savings = $19,200, which exactly covers the down payment. Monthly debt-to-income ratio = ($400/$60,000)*12 = 8.00%.
Based on this calculation, Person A has the highest eligibility as they have enough savings for the down payment and the lowest debt-to-income ratio among the four individuals.