Fannie Mae – Business Debt Affecting Personal Income: If a business pays a loan that the business owner had to guarantee personally and shows as paid on time, with 12 months cancelled checks from the business, do we need to count that debt against the borrower?
Answer: Business debt personally guaranteed by the owner can be tricky. There are ways that it does not need to be counted, so call me! The information below is the text specifically from the Fannie Mae selling guide for this topic. I would just advise my underwriting team to make sure they considered the payment […]