cancel
Showing results for 
Search instead for 
Did you mean: 

Self-Employed Mortgage Question?

tag
steelers1
Frequent Contributor

Self-Employed Mortgage Question?

My company service vehicle is a cargo van. The expenses are accounted for on my schedule C. The payment is made every month out of my business checking. The payment amount is on my personal credit report since I did get the loan for the van. My Sch. C net income is already reflecting the vehicle expenses.

 

When a loan officer is calculating my DTI ratio could the payment amount of the van be except since its already accounted for?

 

TIA!

Message 1 of 3
2 REPLIES 2
pizzadude
Credit Mentor

Re: Self-Employed Mortgage Question?

If you are on the loan for the van then I'd assume that it would have to be included in your DTI.  Even if you are paying it out of your business checking account, you are the responsible party.  

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 3
ShanetheMortgageMan
Super Contributor

Re: Self-Employed Mortgage Question?

If you can document the business has been paying the debt for the past 12 months + it's accounted for as an expense on the tax return, then it wouldn't be counted against your DTI since it's already been factored into the net income from your Schedule C.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.