Fannie Mae & Freddie Mac – Business Debt Guaranteed by Borrower: Do I have to count a business debt in the DTI for a loan guaranteed by my applicant but paid for by his company? Debts Paid by Others Chart

Answer: This is something that originators come by quite often. If the borrower is personally obligated on the loan you mention, even though business debt, then you will need to follow the “business debt in borrower’s name” guidelines posted in our reference section.  If, on the other hand, the business debt is in the name [...]