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Coborowwer DTI Effect

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jdm2008
New Member

Coborowwer DTI Effect

I'm a coborrow on my paren't car.  They have made the payments for 20 months directly to the lender.  Can this be excluded from DTI?  What if I was only a cosigner(however without the payment history because I would have to refinance for this to happen)?  Is the answer the same?

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StartingOver10
Moderator Emerita

Re: Coborowwer DTI Effect


@jdm2008 wrote:

I'm a coborrow on my paren't car.  They have made the payments for 20 months directly to the lender.  Can this be excluded from DTI?  What if I was only a cosigner(however without the payment history because I would have to refinance for this to happen)?  Is the answer the same?


Co-borrower = Co-signer 

There is no difference from a lender POV and they are reported the same on the CR.

 

If you can show that the payments are being made by your parents directly from their account for the last X (at least 12) months, then some lenders will exclude the payment from your DTI.  You will need to show proof. Ask your LO what their specific guidelines are for this issue.

Message 2 of 3
Anonymous
Not applicable

Re: Coborowwer DTI Effect


@StartingOver10 wrote:

@jdm2008 wrote:

I'm a coborrow on my paren't car.  They have made the payments for 20 months directly to the lender.  Can this be excluded from DTI?  What if I was only a cosigner(however without the payment history because I would have to refinance for this to happen)?  Is the answer the same?


Co-borrower = Co-signer 

There is no difference from a lender POV and they are reported the same on the CR.

 

If you can show that the payments are being made by your parents directly from their account for the last X (at least 12) months, then some lenders will exclude the payment from your DTI.  You will need to show proof. Ask your LO what their specific guidelines are for this issue.


Bingo!

Message 3 of 3
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