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Can a mortgage debt which is paid by another party be omitted from ratios?
-Can a mortgage debt which is paid by another party be omitted from ratios?
When a borrower is obligated on a mortgage debt – but is not the party who is actually repaying the debt – Arch MI allows the full monthly housing expense (PITIA) to be omitted from the borrower’s recurring monthly obligations if: a) the party making the payments is also obligated on the mortgage debt being omitted, and is not an interested party to the subject transaction, b) the file contains the most recent 12 months’ cancelled checks (or bank statements) from the party making the payments, and there are no delinquencies in the most recent 12 months, and c) no rental income from the applicable property is used to qualify.
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Can a non-mortgage debt which is paid by another party be omitted from ratios?
-Can a non-mortgage debt which is paid by another party be omitted from ratios?
Yes, Arch MI allows a non-mortgage debt to be excluded from DTI calculations, provided that a) the party paying the debt is not an interested party to the transaction (such as the seller or realtor), and b) the most recent 12 months’ cancelled checks (or bank statements) from the party making the payments are obtained, to document a 12-month payment history with no delinquencies.
