How much annual income would you need to have if using the 2836 ratio your maximum allowable recurring debt is 380?

To determine the annual income needed using the 28/36 ratio, we first need to understand that the 28% refers to the maximum percentage of gross monthly income that can go toward housing expenses, while the 36% refers to total monthly debts. Given that your maximum recurring debt is $380, this represents 36% of your gross monthly income. To find the monthly income, divide $380 by 0.36, which equals approximately $1,056. Therefore, the annual income needed would be about $12,672.