PAYING OFF DEBT TO QUALIFY
PAY OFF VS. PAY DOWN
Accounts may not be “paid down” to 10 months or less to allow the borrower to qualify. Installment or Mortgage accounts must be paid in full. Auto leases must be held in ratio’s regardless of the number of payments remaining.
The Payoff of revolving accounts in order to qualify the borrower is no longer allowed for any LP approved loans.
The payoff of revolving accounts in order to qualify MAY be allowed for DU approved loans if the account is paid in full and the credit line is closed. This is an exception to policy and is subject to exception pricing.