mortgage underwriting (insurance, lender, payment, interest)

[lgn1151]

I have an auto payment that I always pay with my business checking account. Will my lender have to assess this debt in my debt ratio if I can prove that the business pays the payment??

[SmartMoney]

This is one of those pesky items that will vary lender from lender, but it will primarily depend upon how you write the vehicle off......personal or business. If you have a 2106 on your taxes for the vehicle, probably not. However, if it's 100% in the business, you can show title and insurance in the business name, chances are good.

It's all going to depend how the vehicle was treated tax-wise in your tax returns.

[lgn1151]

All I have is my business checking account that I pay my business expenses with... nothing more. Should the lender look for interest claimed?? Or some type of auto expense on my Schedule C??

I just want to be ready. Thank you!

[SmartMoney]

If the vehicle is on Schedule C, more than likely, it will be considered personal. If you had the vehicle on an 1120S (S corp), it would have been more favorable. On your returns, do you file a 2106? (mileage and repairs) If so, it's even more probably they will count the debt against you. Do you have other autos for your personal use?