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2. Mortgage classifications and borrower creditworthiness Suppose Juanita is planning to purchase a home and in her mortgage application, she declares that she plans to put a 4.5 percent down payment on the home. Additionally, Juanita's debt-to-Income ratio and credit score are 40 percent and 590, respectively. The lender Juanita is using is FHA approved, and the loan is approved, it will be backed by the FHA Assuming that Juanita's mortgage application is accepted by the wender, how would her mortgage likely be classined? Conventional mortgage O Federally insured mortgage Fixed rate mortgage Prime mortgage Suppose Charles, Dina, and Gilberto are looking to purchase homes in Chicago, and they all happen to find exactly the home they are looking for within a mile of one another, each costing $210,000. None of the homeowners have enough cash to purchase their selected home outright, so each of them needs to submit a mortgage application in order for their lender to determine whether or not the borrower will be able to repay the mortgage loan. Suppose Charles, Dina, and Gilberto all use Quicken Loans as their lender and that they all submit their mortgage applications at the same time. The following table shows: (1) the amount that each borrower suggests they will put as a down payment on their home, (2) each borrowers' debt-to- Income ratio, and (3) each borrower's credit score. Using the information in the table, answer the question that follows. Borrower Debt-to-Income Ratio 13% Charles Down Payment $42,000 $10,500 $18,900 Credit Score 820 Dina 29% 440 Gilberto 17% 690 Given the information in the table, which of the three borrowers has the strongest mortgage application? O Charles Dina Gilberto

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