Conventional loans · Fannie Mae B3-6-05Student loans and other debts in the debt-to-income ratio: what Fannie Mae counts
Fannie Mae's debt-to-income ratio includes the borrower's recurring monthly debts, and the Selling Guide (updated August 5, 2026) says how to count each one. Student loans: the payment on the credit report, or on the latest student loan statement if the report is wrong; if the report shows no payment or $0, a documented $0 payment under an income-driven plan can be used, and for deferred loans or loans in forbearance the lender may use 1% of the outstanding balance or a fully amortizing payment under the documented terms. Credit cards and other revolving accounts: the required minimum payment, or 5% of the balance if none is shown (DU uses the greater of $10 or 5%). Installment debts – car loans, personal loans, student loans, timeshares – count when more than ten payments remain, or fewer if they significantly affect the borrower. Lease payments always count, whatever the months remaining. Alimony, child support and separate maintenance count when they continue for more than ten months; alimony can instead reduce income. Open 30-day charge accounts paid in full each month do not count. A debt someone else actually pays can be excluded with 12 months of that person's canceled checks or bank statements – unless that person is the seller, the real estate agent or another interested party.
Student loans
Payment on the credit report
Use it; if it is wrong, use the latest student loan statement.
Income-driven plan at $0
Allowed with student loan documentation showing the actual payment is $0.
Deferred or forbearance
1% of the outstanding balance, or a fully amortizing payment under the documented terms.
Other debts
Credit cards and revolving lines
Required minimum payment; none shown: 5% of the balance (DU: greater of $10 or 5%).
Installment debts
Car, personal, student loans and timeshares count with more than 10 payments left.
Leases
Car or housing leases always count – they usually lead to a new lease or purchase.
Alimony, child support
Count when they last more than 10 months; alimony may reduce income instead.
Garnishments
Count with more than 10 months remaining.
30-day charge accounts
Paid in full every month – not included.
Bridge loan
Counts unless the current home's executed sales contract is in and its financing contingencies are cleared.
Debts that can be left out
- A debt someone else pays: 12 months of their canceled checks or bank statements with no late payments – not if they are the seller or agent.
- A debt assigned to an ex-spouse by court order, even if the creditor did not release the borrower.
- A loan secured by the borrower's own 401(k), CD or life insurance, with a copy of the loan instrument.
- Business debt in the borrower's name paid by the business, with 12 months of company checks and no delinquency.
What the TC can do
- Remind buyers not to open, close or move debts before closing without asking the lender.
- If a parent pays a buyer's car or student loan, get 12 months of the parent's payment records to the lender early.
- For a deferred student loan, ask the lender which payment it is using – 1% of the balance can change the approval.
Questions buyers ask
How are deferred student loans counted for a Fannie Mae mortgage?
The lender may use 1% of the outstanding balance or a fully amortizing payment under the documented repayment terms (Selling Guide B3-6-05).
Can a $0 income-driven student loan payment be used?
Yes, if the lender obtains student loan documentation verifying the actual monthly payment is $0.
What payment is used for a credit card with no minimum shown?
5% of the outstanding balance, unless documentation supports a lower payment; DU uses the greater of $10 or 5%.
Related guides
ClosingCode's loan update message reminds your buyer, in English or Spanish, to avoid new credit and large purchases until after closing – you review it and send it.
Start free trialSource: Fannie Mae Selling Guide B3-6-05, Monthly Debt Obligations (08/05/2026), selling-guide.fanniemae.com, read October 25, 2026.
General information about Fannie Mae conventional loans, not financial advice. FHA, VA, USDA and each lender's overlays count some debts differently. ClosingCode is software; it is not a lender. This guide is not a substitute for the advice or services of an attorney.