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jyt123
25 Posts |
 Posted - 03/27/2008 : 3:18:13 PM
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If there is 10 months or less owing on a car payment can this payment be excluded from the DTI according to FHA guidelines.
janetofc@ctsmail.net |
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EMScommercial
3512 Posts |
Posted - 03/27/2008 : 3:22:57 PM
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| check with ppulatie.... |
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jvanpetten
1631 Posts |
Posted - 03/27/2008 : 3:51:38 PM
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| DU/LP will usually not count it in the DR. |
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dkendall1979
6842 Posts |
Posted - 03/27/2008 : 3:55:17 PM
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Yes, can be excluded.
With us anyway. |
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jvanpetten
1631 Posts |
Posted - 03/27/2008 : 3:56:25 PM
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| Did you run it? |
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jyt123
25 Posts |
Posted - 03/27/2008 : 4:00:15 PM
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| Manuel uw. I couldn't get in touch with my uw or ae that is why I was asking the question. |
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ehm3
763 Posts |
Posted - 03/27/2008 : 4:03:56 PM
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short term debts with FHA are at the underwriter discretion. As long as the debt does not interfere with the ability to make the house payment, it can be excluded. Yes, that is very ambiguous, so don't be surprised if you have to fight with UW's on this a lot.
generally the best way to determine this is if the borrower is currently handling a similar debt load, or the borrower has cash reserves that could be used to get thru that time. But I am sure there are other ideas that could be used to justify it as well. |
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jvanpetten
1631 Posts |
Posted - 03/27/2008 : 4:18:00 PM
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Make sure it is not a lease. That always gets counted. The Underwriter will assume that they will turn in the car and get another. I have tried that fight before and did not win.
With a manual, your DR really can't be too far off the guidelines. They are tough on DR on a manual. |
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MoneyLenderP
927 Posts |
Posted - 03/27/2008 : 4:19:35 PM
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| within 12 months and not a lease you can get this done. |
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liverichly
3083 Posts |
Posted - 03/27/2008 : 4:22:02 PM
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All installment accounts with ten payments or more remaining will be included in long term obligations for qualifying purposes. Payments less than 10 months remaining that are of such size as to impact applicant’s ability to make the mortgage payments will be counted in the qualifying ratios.
Example: Monthly payments of $300 on an auto loan with a remaining balance of $1500, even though it should be paid out in 5 months, would be considered significant. |
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1stintegritymort
1165 Posts |
Posted - 03/27/2008 : 4:29:43 PM
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| i just closed one of these recently and the UW sent me the guidelines. they say that if there are 10 payments or less they do not count it, but if there are late payments they do count it. my borrower only had 3 payments left but had lates so she had to pay off the car prior to closing to make the loan go through. those were fha guidelines, not the lenders... |
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