Authorized user accounts and co-signed debts can count in DTI, but each agency sets conditions under which they can be left out. FHA counts an authorized user account unless the primary account holder has made all required payments for the previous 12 months, under both TOTAL and manual underwriting. Fannie Mae and Freddie Mac address authorized user payments in their manual underwriting rules, counting the payment when the borrower is documented as having made it for the past 12 months. Co-signed debts can be excluded under Fannie Mae, Freddie Mac and FHA rules when another party has made the payments for the most recent 12 months, and under VA rules when someone else is paying, the obligation is current and there is no reason to believe the borrower will help repay it.
Fannie Mae (conventional)
- For manually underwritten loans, a tradeline listing the borrower as an authorized user "cannot be considered in the underwriting decision" unless another borrower owns it or the borrower documents being the actual and sole payer for at least 12 months before application. Fannie Mae B3-5.3-06
- Under the same rule, when the borrower's payments are documented, the payment history must be considered and "the monthly payment obligation must be included in the debt-to-income ratio." A tradeline owned by a non-borrowing spouse must also be considered. Fannie Mae B3-5.3-06
- These manual underwriting requirements do not apply to DU loan casefiles: DU takes authorized user tradelines into account in its credit risk assessment, and no additional investigation is required unless DU instructs it. Fannie Mae B3-5.3-06 Fannie Mae B3-5.3-09
- When the borrower is obligated on a non-mortgage debt but another party is actually repaying it, whether or not that party is also obligated, the lender may exclude the payment, unless the other party is an interested party to the transaction. Fannie Mae B3-6-05
- Exclusion requires the paying party's most recent 12 months' canceled checks or bank statements showing no delinquent payments. A mortgage payment can be excluded only if the paying party is obligated on the mortgage and no rental income from the property is used. Fannie Mae B3-6-05
Freddie Mac (conventional)
- An authorized user account payment must be included in DTI only if Section 5202.1(c) requires the manually underwritten file to document that the borrower has been making the payments for the last 12 months. Freddie Mac 5401.2
- A contingent liability on an installment, revolving or lease debt may be excluded when another party, whether or not obligated on the debt, has made timely payments for the most recent 12 months and is not an interested party to the transaction. Freddie Mac 5401.2
- To exclude a mortgage payment on the same basis, the party making the mortgage payments must be obligated on the Note. Freddie Mac 5401.2
FHA
- In both TOTAL and manual underwriting, authorized user accounts must be included unless the lender documents that the primary account holder made all required payments for the previous 12 months; if fewer than three payments were required in that period, the payment must be included. FHA 4000.1 II.A.4.b.iv FHA 4000.1 II.A.5.a.iv
- In both TOTAL and manual underwriting, contingent liabilities, which may include co-signer liabilities, must be included unless there is no possibility the debt holder will pursue the borrower, or the other legally obligated party has made 12 months of timely payments. FHA 4000.1 II.A.4.b.iv FHA 4000.1 II.A.5.a.iv
- To leave a cosigned liability out, the lender must document that the other party has been making regular on-time payments during the previous 12 months. FHA 4000.1 II.A.4.b.iv
VA
- For a co-signed loan, the lender may exclude the payments if there is evidence someone else is making them and the obligation is current, and there is no reason to believe the borrower will have to participate in repayment. VA Pamphlet 26-7, Ch. 4 Topic 5
The VA Lender's Handbook in Strata does not set a separate rule for authorized user accounts.
Sources
- Fannie Mae Selling Guide, September 2, 2026 version: B3-5.3-06, Authorized Users of Credit (p. 480); B3-5.3-09, DU Credit Report Analysis (p. 488); B3-6-05, Monthly Debt Obligations (p. 517)
- Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 5401.2(b), Liabilities included in the monthly DTI ratio (authorized user accounts) (p. 5401-10); 5401.2(c)(i), Contingent liabilities (p. 5401-12)
- FHA Single Family Housing Policy Handbook 4000.1, August 12, 2026 version: II.A.4.b.iv, Evaluating Liabilities and Debts (TOTAL): General Liabilities and Debts (p. 213); II.A.5.a.iv, Evaluating Liabilities and Debts (Manual): General Liabilities and Debts (Manual) (p. 291); II.A.4.b.iv, Evaluating Liabilities and Debts (TOTAL): Contingent Liabilities (p. 219); II.A.5.a.iv, Evaluating Liabilities and Debts (Manual): Contingent Liabilities (Manual) (p. 299); II.A.4.b.iv, Evaluating Liabilities and Debts (TOTAL): Contingent Liabilities, Cosigned Liabilities (p. 220)
- VA Lender's Handbook (VA Pamphlet 26-7), August 12, 2026 version: Chapter 4, Topic 5: Debts and Obligations, d. Borrower as Co-obligor/Co-Signor on a Loan or Obligation (PDF p. 97)
Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.
