Fannie Mae & Freddie Mac – Business Debt in Borrower Name: Do I need to count a business debt that the borrower guaranteed? [CHART- Business Debt in Borrower’s Name – All Agencies]

Answer: Freddie Mac is a bit more lenient in this scenario than Fannie Mae. Freddie Mac states: Do not consider monthly payment in DTI if: The mortgage file contains evidence that the debt has been paid timely by the borrower’s business for no less than the most recent 12 months, and The tax returns evidence [...]