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Certain Requirements for Authorized User Tradelines

Apr 5, 2024

Are you aware of the specific requirements that FHA has for authorized user tradelines in Georgia? It’s important to understand these guidelines to ensure a smooth mortgage application process.

When a borrower is involved in an authorized user tradeline, the monthly payment must be taken into account in the debt ratio calculation. However, there are exceptions to this rule. If there is documentation proving that the primary account holder has been making payments for the past 12 months, the payment may be excluded from the borrower’s debt ratios.

On the other hand, if the account is less than 3 months old, the payment must be included in the borrower’s debt ratios. This is crucial information to keep in mind when applying for a mortgage in Georgia.

By following these guidelines set by FHA, borrowers can ensure that their mortgage application process goes smoothly and that they are well-prepared for any potential challenges that may arise. It’s always best to be informed and proactive when it comes to your financial responsibilities.

If you have any questions or need further clarification on authorized user tradelines in Georgia, don’t hesitate to contact GeorgiaMortgage.com. Our team of experts is here to help you navigate the mortgage process and make informed decisions about your financial future.