Tag: lease payments

Why do lease payments need to be counted when the lease is nearing its end?

Question: The credit report for my borrower is showing a lease payment of $400 and only a balance of $800.  They have reserves to pay that off prior to closing and he does not intent to get another lease because his company provides him with a car.  Why is my underwriter insisting that this payment […]

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Fannie Mae-Car Lease Obligation: If a client chooses to pay off a car lease, do we need to count the debt in the ratios?

Answer: If you want to avoid adding the debt into ratios, your client would have to buy the car outright. They can have no financing whatsoever, not a lease, and not a loan to buy out the lease; nothing. Here is what Fannie says about Lease Payments (no difference in requirements for Freddie Mac, by the […]

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