- Installment debt is a monthly obligation with fixed payments and terms. Payments on installment loans must be included in the Borrower’s debt-to-income ratio. Payments can be excluded if there are ten (10) or fewer monthly payments remaining to pay the debt in full.
- Installment debt paid down prior to closing can be excluded from the debt-to-income ratio.
- Note: Lease Agreements may not be excluded or paid off to reduce the debt-to-income ratio
Installment Debt
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