Freddie Mac – Revolving Debt Pay Offs: Does Freddie Mac require that revolving accounts be closed, when debts are paid off to be excluded in the DTI?
Answer: There was a time that Freddie required closing of a debt when paying it off to qualify. Freddie no longer has that guidance. An excerpt from the Freddie selling guide is below and you can see there is no requirement for an account to be closed. Reference: 5401.2: Monthly debt payment-to-income ratio (01/18/18) The Borrower’s [...]