Income Included in Debt to Income Rules

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Question:

We have a customer that has horrible credit, but owns acreage and real estate. Her only income is $500 a month. She wants to borrow money using her property as collateral. Her father, 86 years of age, will be on the deed and loan with her. He has income sufficient to support the loan but does not live with her. Can his income be included in the debt to income since he will not be living in the home?

Answer:

A co-borrower's income is included, ignoring other issues re age of father, etc.

The family relationship is generally sufficient consideration for him to co-borrow.