HAMP Loan Modification - Expenses To Include In The Back-End DTI Calculation

I was wondering what expenses should be included in the back-end DTI. You mentioned monthly obligations such as 2nd lien, car payments, credit cards etc. as part of the back-end DTI calculations. What I wanted to know is if food, gas, miscellaneous expense etc are regarded as monthly household obligations? Should these expenses be included in the calculation for the back end DTI?

By the way, thank you for this site and giving guidelines for the HAMP. The information you shared is great and very helpful.

Mortgage Loan Modification Answer:

I'm glad you find the information on our site to be helpful!

As for you question regarding the Back-End DTI calculation for a HAMP loan modification, only the expenses listed should be included.

They are recurring or fixed monthly obligations such as car loan payments, credit card minimum payments, store card minimum payments, mortgage loan payments, child support and alimony, HOA dues, property taxes, and insurance. These are mostly items that would be included in your credit report.

You do NOT have to include any other expenses that do not fall under the above list. Among those excluded from the back-end DTI are: food, phone, cable, gas, entertainment, internet, dry cleaning, clothing, etc.

All the best to you!