Applicable to FNMA Loans: When a borrower is obligated on a non-mortgage debt, but is not the party who is actually repaying the debt, the debt may be excluded from the borrower’s recurring monthly obligations, with satisfactory documentation. This guideline applies whether or not the other party is obligated on the debt, but is not applicable if the other party is an interested party to the subject transaction (such as the seller or realtor). Non-mortgage debts include installment, revolving, lease payments, alimony, child support, and separate maintenance.
The mortgage loan file must obtain the most recent 12 months’ cancelled checks (or bank statements) from the other party documenting a 12 month satisfactory payment history. There must be no delinquent payments for that debt in order to exclude it from the borrower’s debt-to-income ratio.
The previous guideline stated the person paying the debt must be obligated on that debt.