Question: Our client has a home that they will sell after they move into their new home. They qualify with both of these payments, but they also co-signed for their son’s home 2 years ago. Can we document that the son pays the home loan so I do not have to count it against the […]
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Answer: Only if you meet the following conditions. Reference: B3-6-05, Monthly Debt Obligations (01/30/2018) Debts Paid by Others Certain debts can be excluded from the borrower’s recurring monthly obligations and the DTI ratio: When a borrower is obligated on a non-mortgage debt – but is not the party who is actually repaying the debt – […]
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Answer: Fannie and Freddie aren’t so kind as to address both deferred AND cosigned student debt. They have a section if someone else is paying for the debt (whether they are obligated on the loan or not) and then they have a section on student debt requirements, including deferment. Fannie and Freddie do not care if […]
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Answer: See text from Fannie Mae selling guide below. As long as the payments have been made on time and you have 12 consecutive months’ worth, you should be okay. Reference:B3-6-05, Monthly Debt Obligations (01/30/2018) Debts Paid by Others Certain debts can be excluded from the borrower’s recurring monthly obligations and the DTI ratio: When […]
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