Lease payments, such as a car lease, do not need to be considered when applying for FHA financing, IF the lease ends in less than 10 months AND the balance is less than or equal to 5% of the borrower’s gross monthly income.
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Answer: [tweet-start]If your client has a leased car payment that is ending soon, we may not need to count that as a debt for FHA Financing. Contact me![tweet-end] FHA allows any closed-end debt (this would include a lease) to be disregarded per the requirements below. Reference: 4000.1, II, A, 4, b, iv (A) General Liabilities […]