With a loan amount of $183,000, Miss Tejada should have gross earning of...
$183,000 x 36% = $65,000
for a responsible loan that can be properly serviced.
According to Scott Jagow:
She makes $2470 a month. 54% of her income goes to service the mortgage. Here’s what she says about that:
… I’m left with $1,142 per/month, which is plenty for me.
2009-10-22: Of 21 Year Old With The Underwater FHA Loan
Denise got an FHA loan to buy her home for $155,000. She took out a second loan (called a 203-K loan) to refurbish the place. The total loan amount is about $183,000. She says, “In total, I gave the bank $5,087 + $1,500 which were all deposit and closing costs.”
So her “down payment” was no more than 4% of the value of the home when she bought it. She will get all of that back and then some with the first-time home buyer tax credit.
In other words, thanks to the various government tax breaks, Denise put absolutely no money down on her home. If she has to default on her mortgage, she'll lose nothing except her credit rating. Of course, since she's only 21 years old, there's plenty of time to recover from that.
Don't you feel awesome for helping Tejada achieve the American dream?