Hello People. This is my 1st question so bare with me.
Come February I attend to apply for a One-Time Construction loan. The question I have is that i have an auto loan that is 3K a month. Right now that is my only DEBT. The question Im asking how many months (3/6/10/12) left on my loan could be left without the mortgage company counting it against my DTI.
So for instance if i only have 10 payments left on my auto loan will they still count that against my DTI?
Thanks i really appreciate
Fannie Mae guide says payments over 10 months. See link.
Thank you. I really doubt i will be going FHA but i really appreciate the quick reply. I hope this is also conventional loan also.
@CH-7-Rebuilding posted the guidleines for Fannie Mae (conventional) not FHA.
It's important to note that the guidelines do have limitations on omitting debt as seen below:
monthly payments on installment debts and other mortgage debts that extend ten months or less if the payments significantly affect the borrower’s ability to meet credit obligations;
monthly payments on lease agreements, regardless of the expiration date of the lease.
The problem with the part in red is it's highly subjective & will depend on the underwriter.