Roberto is applying for a mortgage. He has a monthly gross income of $3,500. The home he would like to buy has monthly payments for a mortgage of $1,000, a property tax of $150, a hazard insurance premium of $75, and a mortgage insurance premium of $75. Roberto also has other monthly debts totaling $500 per month. Would he qualify based on the FHA total fixed payments-to-income ratio?
A) Yes, his total fixed payments-to-income ratio is 37%.
B) No, his total fixed payments-to-income ratio is 37%.
C) Yes, his total fixed payments-to-income ratio is 51%.
D) No, his total fixed payments-to-income ratio is 51%.