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DTI question

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New Member

DTI question

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 

 

 

 

Message 1 of 5
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Valued Contributor

Re: DTI question

Fannie Mae guide says payments over 10 months.   See link.

https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-B...

FICO 8: EX-775, EQ-776, TU-770 - [10/9/2020]
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Mortgage: EX-725, EQ-724, TU-744 - [10/9/2020]
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214.5K Total Revolving.
Alliant Auto Loan 2.5K/31K
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Message 2 of 5
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New Member

Re: DTI question

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.

Message 3 of 5
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Community Leader
Valued Contributor

Re: DTI question


@Lboogy12 wrote:

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.


Hi @Lboogy12,

 

@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.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 4 of 5
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New Member

Re: DTI question

Thank You. 

Message 5 of 5
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