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Car included in DTI calculation

Posted on: 01st Mar, 2012 12:42 am
Hi there… I need to clarify this… I owe 8.9 payments on my car including interest payments. Will my car be included on anybody's DTI calculation for an FHA loan? Thank you for your advice.
Hi Salmonel,

As far as I know, the car payments will be included while calculating the debt to income (DTI) ratio. If you were left with 3-4 payments, then the lender may not take into consideration the car payments for calculating the DTI ratio.


Posted on: 01st Mar, 2012 02:25 am
Hi Salmonel!

Welcome to forums!

As you've 8.9 payments left to make on the car loan, this debt will be included by the lender in calculating your DTI ratio.

Feel free to ask if you've further queries.

Posted on: 01st Mar, 2012 09:16 pm
Following is FHA guidleline:

Debts lasting less than ten months must be counted if the amount of the debt affects the borrower's ability to make the mortgage payment during the months immediately after loan closing.; this is especially true if the borrower will have limited or no cash assets after the loan closing.

This simply means maybe it will be counted and maybe it will not.

If you have no cash reserves left after closing, it will be counted.

If you have cash reserves after closing, maybe it will not. How much liquid cash reserves will be examined by the underwriter and the underwriter will decide if it is to be counted or not.
Posted on: 05th Mar, 2012 03:05 pm
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