I'm a bit confused:
With a 45% back end DTI, the borrower should be able to qualify for up to $1,725 of monthly outgoing expenses, including mortgage payment, property tax, and insurance.
(.45*46,000)/12 = 1,725
Which according to my calculations (@4.5% fixed) equals a purchase price of over $300,000 if the borrower is putting 20% down for a standard conventional mortgage.
What am I missing? Let me know. It's been a hectic morning. lol