What amount do I use for a revolving account with no payment showing on the credit report?

Revolving Charge Accounts refer to a credit arrangement that requires the Borrower to make periodic payments but does not require full repayment by a specified point of time.  The Lender must use the credit report to document the terms, balance and payment amount on the account, if available.  Where the credit report does not reflect the necessary information on the charge account, the payment amount from the most recent charge account statement must be used or 5 percent of the outstanding balance must be used to document the monthly payment.     

For additional information see Handbook 4000.1 II.A.4.b.iv(J) or II.A.5.a.iv(I) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh


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-04515