Friday, November 28, 2008

Do Car Lease Payments Count as a Liability?

We're often asked if car lease payments count as a liability when qualifying a borrower for a loan.

The answer is yes, even if there are only one or two payments left on the lease. There is a reasonable expectation that the borrower will have to either buy a car or lease another one after the current lease is up, so the payment needs to be counted as a liability.

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