Mortgage Navigator • Conventional • Debts & DTI
Installment debt & the 10-month rule
Ten remaining payments is a useful threshold, not an automatic permission slip to ignore a large monthly payment.
Fannie
Installment debt with more than ten payments remaining is generally included. Debt with ten or fewer remaining payments may be excluded, but the lender should still include it when the payment significantly affects the borrower's ability to meet credit obligations.
Freddie
Freddie likewise permits qualifying installment debt to be excluded when file documentation shows ten or fewer payments remain, subject to its Guide requirements and overall debt analysis.
Don't confuse installment debt with leases: lease payments have a separate rule and generally do not disappear from DTI simply because the lease ends soon.
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.