Here's another question we were asked at a recent class we taught:

Q:  Do payroll deductions count as liabilities when calculating the debt-to-income (DTI) ratio?   

A:  If the deduction is used to pay a debt, such as child support, mandatory loan repayments, etc., then it must be counted as a liability.  If the deduction is for payroll taxes, a contribution to a 401(K), union dues, etc., then it does not count as a liability.

 
This post has been included in Colorado Information

2 Comments on Do Payroll Deductions Count as Liabilities?

NOV
13
2008

Great post, Im not even a mortgae broker but I had a client that asked me that last week and I had no Idea what to tell him, except to reffer him to my mortgage guys.
Thanks,

Bethesda Homes for Sale, Bethesda REALTOR & Real Estate Agent Kacem can sell your home.
2:19pm • #1

Thanks, Kacem.  Feel free to give us a call or send an email anytime you have a question.  We only sell loans in Colorado, so we won't even hit you with a sales pitch -- ha ha :-)
5:58pm • #2

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Chris Thomas

Denver, CO

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