Must a monthly obligation for a leased energy system be included in the borrower's debt-to-income (DTI)?

An obligation for a home energy system need not be included as a debt in the borrower’s qualifying ratios. Excluded is any obligation paid to a utility entity (e.g., electric company), or for a leased energy system (e.g., solar lease), or power purchase agreement (PPA).

HUD Policy Determination

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01858