Call Us Today!
Toll Free (800) 905-5069
Local (561) 745-3344
NMLS # 227765
The Mortgage Mashup Blog
|Posted on 27 May, 2015 at 14:05|
Big news from the world of Fannie Mae today. You no longer have to close Revolving debt to qualify for a loan. In the past, if you were doing lets say a cashout refinance and were consolidating some credit cards. If those credit cards being paid off were necessary to get your loan, then in the past, those cards needed to not only be paid in full at closing, but needed to be closed.
Now, such accounts do not need to be closed as a condition of excluding the payment from the debt to income ratio! This is big news for clients that were worried about losing points, rewards, etc. or just the ability to keep the card open. As it states in the Fannie Mae lending guide:
"If a revolving account balance is to be paid off at or prior to closing, a monthly payment on the current outstanding balance does not need to be included in the borrower's long-term debt, i.e., not included in the debt-to-income (DTI) ratio. Such accounts do not need to be closed as a condition of excluding the payment from the DTI ratio."
For more information, please go to the fannie mae site using the following link:
As always, your's in service,
Vincent J. Fiordilino.