Debts Paid by Others

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 [...]

2019-04-19T17:52:35-05:00April 24th, 2019|

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 [...]

2019-03-25T08:53:41-05:00March 25th, 2019|

Universal – NEW Chart – Debts Paid by Others – All Agencies

Written By: Lloyd Rutherford, Staff Writer We get a lot of questions regarding Debts Paid by Others through our Ask the Experts feature.  To assist our subscribers, our experts have created an ALL agencies chart for this subject. Interpretive Comments: Variation in the guidelines regarding what is counted when a debt is paid by others [...]

2018-12-13T11:45:43-05:00December 10th, 2018|

Multiple FAQ’s: Appraisal and Property-Related FAQs – Dated August 7, 2018; DU Validation Service FAQs – Updated July 19, 2018; and Student Loan Solutions – Dated July 2018

Written By: Lloyd Rutherford, Staff Writer Mega Fannie Mae FAQ Update!  Looks like Fannie had a lot of questions that needed to be addressed in the Appraisal, DU and Student Loan department.  Stay up to date by reading through these frequently asked questions! Rule Synopsis: Three FAQ documents have been updated. They are: Appraisal and [...]

2018-09-10T11:24:42-05:00September 9th, 2018|