DTI question

[Anonymous]

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 

[CH-7-Mission-Accomplished]

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

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

[Anonymous]

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.

[VALoanMaster]

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@Anonymous 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.

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Hi @Anonymous,

@CH-7-Mission-Accomplished 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.

[Anonymous]

Thank You.