Your Member wants to exclude a lease payment from her DTI calculation after reducing the balance. What must the balance be brought down to?

When determining whether a lease payment can be excluded from a borrower's debt-to-income (DTI) calculation, it's essential to note that the balance of the lease must be reduced to $2000 or less. This requirement is in place to ensure that the debt is manageable and does not overly burden the borrower's financial situation. By ensuring that the remaining balance meets this threshold, lenders can assess the borrower's ability to repay their debts more accurately while allowing for a clearer picture of their financial standing.

If the balance were higher than $2000, it would typically mean the lease payment still represents a significant ongoing financial obligation, and excluding it from the DTI calculation might not reflect the true risk to the lender. Thus, maintaining the balance at or below this threshold helps facilitate a more responsible lending process by promoting borrower sustainability.