FHA and possible to exclude a debt?

[cship10]

Hi All, 

Quick question in regards to FHA financing. I am looking to apply for FHA with out my partner being on the home loan - His credit has a long ways to go and we are tired of renting. I work in the car business and leased a vehicle for him - he makes the payments but in order to qualify for the employee discount and lease rates it had to be leased in my name. I was speaking with someone recently who said that it could be exluded from my DTI with showing 12 months of payments coming from someone else. Is this true? And the only other question is - the previous lease was up and got a new one in November for him - will that restart the 12 month clock if it is possible to exlude it?

As well, I have a strong base income plus comission. How will the underwriter determine what my income is? I have 7 years in the business but just this past year have more than doubled my income by taking on a promotion.

Thank you for your assistance! 

[DallasLoanGuy]

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@cship10 wrote:

Hi All, 

Quick question in regards to FHA financing. I am looking to apply for FHA with out my partner being on the home loan - His credit has a long ways to go and we are tired of renting. I work in the car business and leased a vehicle for him - he makes the payments but in order to qualify for the employee discount and lease rates it had to be leased in my name. I was speaking with someone recently who said that it could be exluded from my DTI with showing 12 months of payments coming from someone else. Is this true? And the only other question is - the previous lease was up and got a new one in November for him - will that restart the 12 month clock if it is possible to exlude it?

As well, I have a strong base income plus comission. How will the underwriter determine what my income is? I have 7 years in the business but just this past year have more than doubled my income by taking on a promotion.

Thank you for your assistance! 

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does that car blow up the dti?

1. yes, prove they pay and it doesnt go against dti.( i think this is still the case. i cant verify at the moment )

2. i think a loan officer could make the argument that the old lease and the new lease are a continuation.... so no start over

[cship10]

Yes, it puts me at 36% dti front end. With out it I am at 14% dti front end. half of my car payment is reimbursed but still included the full amount in my dti as I know they will include all of it. 

My my next question is how will they calculate my income if I am salary and commission? This past year my income shot up from around 50K to pushing 90K and this year will easily break 110k. Do they take into consideration promotions when considering past income for mortgage qualifications? My base has double and my commission has shot up as well.

[ShanetheMortgageMan]

If the car lease is only in your name then it'll be included in your DTI.  To exclude it, it'd have to be a joint account and the other account holder would need to make the payments for the past 12 months solely from an account in their name.  Is it only in your name or is it a joint account with your partner?

What do you mean that half your car payment is reimbursed?  Do you mean your employer pays you that as income?

Your current salary will qualify, for commission income a 24-month average is used (total commissions over the past 24 months divided by 24 months = monthly amount).

Front end DTI = the new housing payment.  A 31% front end DTI should have no problem qualifying for any program other than maybe a USDA loan.

Back end DTI = the new housing payment + your other debts.

Did you mean to say that with the lease payment, your current debts are 31% of your income?