Hello Duncan Cairns,

I spoke with both FNMA & FHLMC & unfortunately you MUST document a 12 month history of another party making the payments.  While they understand that it's only been in repayment 8 months, they're looking for the stability of other party making the payments & they've deemed 12 months to be their line in the sand.  I spoke with Justin @ FNMA & Kyle @ FHLMC.

Original question:

A borrower has student loans that went into repayment in February of this year. Some loans are in his name alone, and others are joint with his mother. Mother states that she has made all payments on all loans.

I understand that guidelines allow us to omit these payments from debt ratio if we can document that the other party is making the payments. The documentation requirement is proof of 12 months worth of payments. Is there an exception to this if we can document that every payment has been made by non borrower over the entire period payments have been made? It looks like we have an 8 month history.