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jns_andrew
157 Posts |
 Posted - 05/22/2008 : 06:46:10 AM
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I have worked on a purchase transaction.
Underwriting just came back and it was declined because of high DTI.
My client has an auto lease account which is supposed to pay off prior to closing to make DTI lower.
However, according to the underwiriter, my client's DTI would be higher than potentially because my client would have another auto payment account after lease is expired. He mentioned that he would take potential monthly obligation into calculation.
I think that it is just specualtion.
Anybody has same experience before? |
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Ksechrest@EQUIFI
1826 Posts |
Posted - 05/22/2008 : 06:57:09 AM
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| yes, underwriters will never excuse auto lease payments with the 10 payment rule or otherwise because technically, the client will have another auto payment starting up once the current lease is expired. |
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HollywoodLO
261 Posts |
Posted - 05/22/2008 : 07:00:27 AM
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| It would be different if it weren't a lease. |
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CoralSnake
11208 Posts |
Posted - 05/22/2008 : 07:02:48 AM
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You need to take auto lease into calculation even if it is almost up since the guy will probably get another car.
If the car was financed and only a few payments left, you can disregard. |
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GEORGIA PEACH
42 Posts |
Posted - 05/22/2008 : 07:27:02 AM
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I had this come up about 2 years ago. EXACT same scenario!
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Janlynn
91 Posts |
Posted - 05/22/2008 : 07:56:45 AM
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| How high is DTI? Does he have any other debts he can pay off before close instead of the lease to get it down to an acceptable DTI? |
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