State Financing: Minimum Housing Payment for DTI: How Do You Handle It?

Hi everyone,

Does your alternative financing program (AFP) use a minimum housing payment (a set amount allocated to housing costs) when evaluating an applicant’s debt-to-income ratio, particularly in cases where applicants claim they have no housing costs? For instance, if an applicant lives with family and reports no rent or room and board but cannot verify their housing expenses.

If your program does include a minimum housing cost, would you please share the amount used and how you determined that figure?

Thanks!