What is the maximum mortgage John, earning $4,000 a month with certain debts, could qualify for?

To determine the maximum mortgage John could qualify for based on his monthly income, it’s essential to consider the typical guideline that lenders use, which often falls around 28% to 31% of a borrower's gross monthly income for housing expenses. Given that John earns $4,000 a month, applying the 28% guideline would imply:

0.28 x $4,000 = $1,120.

This figure represents the maximum monthly housing expense John could afford, which includes not only the mortgage payment but also property taxes, homeowner's insurance, and possibly mortgage insurance.

The option that best fits within these parameters is $985, as it is below the calculated guideline threshold. This amount allows for a reasonable buffer for other expenses and fits well within conventional lending practices.

The other options, while also potential figures that could represent some variations in expenses, do not align as closely with this standard guideline when considering John's monthly income. The fact that $985 fits within a practical framework points to its suitability as the maximum he could qualify for based on these common lending standards.