The Richardson family's stable monthly income is $6000, and their recurring liabilities come to $700 per month. If they want to qualify for a 90% conventional loan, their proposed monthly housing expense (PITI) probably should not exceed what amount?

To determine the maximum proposed monthly housing expense (PITI - Principal, Interest, Taxes, and Insurance) for the Richardson family, we need to look at the elements of qualifying for a conventional loan, particularly when it comes to debt-to-income ratios.

In general, lenders prefer that a borrower's total monthly housing expenses should not exceed 28% to 31% of their gross monthly income. In this case, the Richardson family's stable monthly income is $6000.

Calculating the upper limit for their housing expense involves multiplying their income by the permissible percentage for housing expenses. If we take 28% as a conservative figure, the calculation would be:

$6000 * 0.28 = $1680.

Additionally, we also consider their recurring liabilities of $700. The total monthly obligations should ideally not exceed about 36% to 43% of their income, depending on the lender's guidelines.

When we consider housing expenses and all other liabilities together, we can aim for an overall maximum debt-to-income ratio. For simplicity, we can adjust for other liabilities to keep total payments within a common range.

Using the 36% ratio guideline:

$6000 * 0.36 = $2160 (total allowance for