Credit Card Center Advertiser Disclosure

Established Member
Posts: 24
Registered: ‎11-02-2012
0 Kudos

FHA and Installment Loans

Hello everyone. I'm planning to purchase a home thru FHA in Feb. and need some advice regarding installment loans. I have a student loan with a balance of $3,000. My payments are $131.00 a month.  I have read that if your remaining bal. on an installment loan is less than 10 payments this figure is not counted in your DTI. I'm really hoping someone can verify this cause,  if so, I'm planning to go above and beyond to get this balance down to around say $1,200 by the end of January-which would make the loan having less than 10 payments owed. This would be huge in helping me to obtain the mortgage I'm wanting. Thank you in advance.

Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0 Kudos

Re: FHA and Installment Loans

Yes, if you have less than 10 payments remaining then you don't count that into dti!

Good luck!

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!

Take the myFICO Fitness Challenge
Posts: 10,788
Registered: ‎03-06-2010
0 Kudos

Re: FHA and Installment Loans

webhopper wrote:
Yes, if you have less than 10 payments remaining then you don't count that into dti!

Good luck!

OP, this is lender specific. Some lenders will drop off the debt at 10 months, some at 6 months and some won't drop off the debt unless it is paid in full.

I know that Chase requires the account to be paid in full before they won't include it in your DTI ratios.

At least that is the way it is here in Florida.


Ask your prospective lender first to see what their requiremennts are - or go to a mortgage banker that funds their own loans.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.