FHA – Second Home Debt: If a client has a second home that is less than 10 months before it is paid off, do I need to count that debt?

Answer: FHA allows the exclusion of the mortgage payment on the second home from the DTI calculation IF the cumulative payments of all such debts are less than or equal to 5 percent of the Borrower’s gross monthly income (see the full guideline below). FHA does not provide a guideline regarding the exclusion of property taxes [...]