Fannie Mae – Business Paid Debt: Can I ignore debt for a borrower if I can prove that the business pays the debt? If so, what type of documentation is needed?
Answer: Technically, you do not need to count the debt provided you meet the guidelines I’ve highlighted below. Regarding the documentation, that decision will rest with the lender or underwriter because you are dealing with proving the business paid for the debt and cash flow on the company. To establish sufficient cash flow, a CPA [...]