Home Equity loan and DTI

[Sam5]

I’m looking to secure a home equity loan or line of credit to consolidate some debt.  We have good credit 761 FICO and our home is worth about 900k of which we owe about 340K.  We are self employed and own about 50k on credit cards so we would like a loan of 60k.  We are very close to the cut off on DTI.  When calculating DTI do they count the CC monthly payments even though that would be paid off with the loan?  Thanks!

[ShanetheMortgageMan]

The credit cards being paid off with the new home equity loan at closing should be excluded from your DTI calculation, but since home equity loans/lines of credit don't have universal guidelines this will be a good question to ask the loan officer since it's possible the answer could be different depending on who you are applying with.  Also to note, these types of programs often have varying DTI requirements between 43-50%.