Can I exclude existing debts listed on my credit profile if my business pays for the debt each month?

Whether the FHA excludes installment debt is a common inquiry among self-employed borrowers trying to qualify for a home loan. For instance, if you financed a truck in your name but your business makes the payments, you might wonder whether that debt can be excluded from your application.

Some mortgage programs, including ones backed by the FHA, may allow this — but only if you can provide substantial documentation proving the business is responsible for the debt. Here’s how it works across different loan types:

• Fannie Mae and Freddie Mac (Conventional): Permitted if you provide 12 months of canceled checks, a CPA letter and business tax returns showing the debt is paid and expensed by the business.
• FHA: Also allowed with the same documentation — 12 months of canceled checks, a CPA letter and business returns reflecting the debt as a business expense.
• USDA: May be allowed on a case-by-case basis. Speak with a mortgage expert for specific guidance.
• VA: Possible, but requirements vary. Consult a mortgage expert to understand your options.

Connect with the experts at Blue Water Mortgage. We’re here to help you navigate your options with clarity and confidence.