1. SECTION
10-8
Other Housing Costs pp

2. Key Words to Know utility costs (p. 361)
The costs or public services such as electricity, water, and gas.

3. Example 1
Sue and Chad Putnam have a combined monthly take-home pay of $3,320. The list of their expenses for May is shown in Figure 10.6 below.
Were their housing costs for May within the FHA guidelines of less than 35 percent of their take-home pay?

4. Figure 10.6

5. Example 1 Answer: Step 1 Find the total monthly cost.
Sum of expenses = $1,221.63

6. Example 1 Answer: Step 2 Find the recommended maximum.
$3, × 35% = $1,162.00

7. Example 1 Answer: Step 3
Compare: Is the total monthly cost less than the recommended maximum?
Is $1, less than $1,162.00?
No, the Kwan’s are not within the guidelines.

8. Practice 1
Juaquin and Maria Eloyza have a combined monthly net income of $4,928.
The following is a list of their housing expenses for the month of April: Mortgage payment, $846; insurance, $31; taxes, $210; electricity, $67; phone, $55; cable TV, $21.95, Internet service; $38; fuel, $55; water, $29.43; washing machine installment payment, $45; repairs, $

9. Practice 1 (cont.)
Find the total monthly housing cost. Is it within the FHA guidelines?

10. Practice 1 Answer FHA recommendation: $1,724.80
Total monthly housing cost: $1,837.73
Is it within the FHA guidelines? No.

11. 362:1-13