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I have an auto lease for $309.00 that will be up in 9 months. Will this amount be factored into out DTI? Looking to purchase in the next 3-4 months.

by loren782 from Altadena, California. Jan 28th 2016 Reply


Antonio Ramos (casagrande)
#391 ranked lender in California - 7 contributions

Lease are always counted into DTI, regardless of payments remaining.

Jan 28th 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Yes.. it will be factored in.. If you had an installment payment on a car and you were within 10 payments of paying it off, then the lender might be able to ignore the payment if it does not significantly affect your ability to pay the new mortgage.. But for lease payments, they will always be counted, regardless of how many remaining you have.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jan 28th 2016
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,246 contributions

Yes, but don't calculate your own DTI, most borrowers don't know how to arrive at the right figure, let a professional do it and help you evaluate your options.

Jan 28th 2016
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Dan Paladin (dpaladin)
#1 ranked lender in California - 604 contributions

As pointed out...lease payments will be counted regardless of remaining payments.For specific info on securing your DTI feel free to contact me. 562.254.5616.

Jan 29th 2016
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Larry Gray (lgray_312_247)
#593 ranked lender in California - 1,139 contributions

You have received some excellent answers. As long as you have a leased automobile lenders assume you will have to lease another at the end of the lease.Thus, once you are done with the lease you might want to consider a cash purchased auto if you need to eliminate that payment to qualify for the home to meet your needs. I have successfully driven and maintained vehicles for as long as 15 years and a couple hundred thousand miles or more. At least get one that lasts until you have found and purchased the right home for you. Please consider though that the reason for not qualifying with that monthly payment included is because it is considered a strong burden on a borrower...going over a maximum allowable debt to income ratio. If another person with income is going to live in the house but not be on the loan well then you probably will not have a burdensome monthly PITI.

Jan 29th 2016
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