Tag: Debts Paid by Others

Fannie Mae – Student Loan Debt Requirements – Scenarios and FAQs – September 2020

Written by: Lloyd Rutherford, Staff Writer Student loans is the number one search item on the Mortgage Currentcy website.  We suspect that with COVID-related Forbearance issues, this topic will become even more important.  Fannie Mae has done an excellent job reviewing student loan scenarios and how to count the debt.  This article is a must […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

VA- Co-Signor Obligation: My veteran client co-signed for both siblings on 2 separate cars. One I can prove 12 months paid by another and the other is only 10 months. Help! [Debts Paid by Others Chart]

Answer: VA doesn’t have a ’12-month rule’ like FHA and Fannie/Freddie when it comes to contingent debt payments from the primary borrower.  (See the guideline below.)  Unfortunately, (but understandably), it is usually the standard that an underwriter will rely on to determine that there appears to be no reason that the co-signor will have to […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

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 […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Scroll to Top