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Old 03-28-2010, 08:46 AM
 
124 posts, read 506,569 times
Reputation: 87

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IN FHA's debt-to-income ratio/guidelines, would a loan against our retirement account count as a monthly debt? We took out the loan last year and pay it back monthly (with a good interest rate paid to ourselves). It was 50 percent of the account (which has rebounded and gone up since last year), and if we stopped making payments (which we don't plan to do), we would forfeit the amount still owed from the remainder of the account. Is this a debt, since we borrowed from ourselves?
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Old 03-28-2010, 08:49 AM
 
Location: Wake Forest, NC
835 posts, read 3,856,998 times
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Absolutely it is a debt. It shows on your paystubs and will be counted in your DTI. This is not an FHA guideline but true for any loan program.
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Old 03-28-2010, 02:07 PM
 
Location: MID ATLANTIC
8,403 posts, read 21,587,946 times
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You need to make sure you are working with a mortgage lender that adheres to FHA guidelines without any overlays.

On FHA loans, my underwriters do not count 401k loans, as we deliver our loans to an investor that underwrites directly to the FHA manual.

I've attached the most recent section regarding debts counted in the ratios. 401Ks are at the bottom.

Good luck.
Attached Files
File Type: pdf 401K_CONTINGENT LIABILITIES.pdf (21.3 KB, 1386 views)
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Old 03-29-2010, 11:52 AM
 
124 posts, read 506,569 times
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Thanks so much for your replies. Very helpful.
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