A borrower receives $2,000 monthly in alimony with 5 years remaining on the court order. They also have $800 monthly in child support obligations with 3 years remaining. How should these be treated in DTI calculations?
Correct Answer
A) Include $2,000 income and $800 debt
Alimony income can be included if it continues for at least 3 years (5 years remaining qualifies). Child support obligations are included as debt regardless of remaining term. This tests knowledge of how various income and debt types are treated differently in DTI calculations based on their duration and reliability.
Why This Is the Correct Answer
Alimony income can be included if it continues for at least 3 years (5 years remaining qualifies). Child support obligations are included as debt regardless of remaining term. This tests knowledge of how various income and debt types are treated differently in DTI calculations based on their duration and reliability.
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