- Student loans with deferred payments
- Car loans paid by someone else
- Installment loans with less than 10 payments left
- Business loans paid by a self-employed business.
Conventional guidelines do not permit the deferment of student loans. If you are applying for a Conventional mortgage, you will have to count the estimated payment into your DTI regardless of how long the loan will be deferred.
A car lease, however, can never be omitted from the DTI. When you turn a leased car into the car dealership, it is expected that you will lease or buy another car, incurring a debt that would be similar to your current car lease payment.
Conventional and Government guidelines allow for the exclusion of car loans paid by someone else if the above documentation is provided.
Revolving debts have revolving payments, so it is extremely difficult to prove that a business has been paying for this account for 12 months.
Documentation that is necessary to prove that a loan is paid by a business includes, but is not limited to:
- 12 months cancelled checks from a business account
- Business account bank statements sourcing the funds may be required
- If the account reports on your credit report as being a business account, this could also help sway the underwriter into omitting accounts paid by your business. Or the original note showing that the account is a business debt could help the cause as well.