Mortgage Navigator • Conventional • Debts & DTI

Debts paid by someone else

Being legally obligated on a debt does not always mean the payment must stay in the borrower's DTI.

Build My Mortgage Game Plan Conventional Navigator

Fannie non-mortgage debt

Fannie can exclude qualifying non-mortgage debts when another party has actually made the payments, subject to documentation and the interested-party restriction.

Fannie mortgage debt

For a mortgage payment to be excluded, Fannie requires additional conditions, including that the person making the payments is also obligated on the mortgage debt and the payment history satisfies the applicable rule.

Freddie

Freddie similarly allows installment, revolving and lease debt to be excluded when another party has made timely payments for the required history; mortgage debt has extra requirements and the paying party must be obligated on the Note.

Practical point: borrowers often assume co-signed debt automatically counts forever. Documentation of who actually pays it can change qualification.

Could the other agency solve this? Fannie Mae and Freddie Mac are not identical. If this scenario fails under one agency, compare the other agency's current rule and AUS result before assuming conventional financing is unavailable. A lender overlay is also different from an agency prohibition.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Debt treatment can change with documentation, remaining term and AUS feedback. Current agency guide controls.