Selling a home "Subject 2" the existing mortgage.

[Kevin Enos]

My question is about when a home owner sells their home "Subject 2" - meaning deeding the house to someone else but leaving their existing mortgage in place. If that seller tries to buy a new home afterwards, will the mortgage payment on the house they sold "Subject 2" count against their DTI when qualifying for a mortgage on their new house? On one hand, they don't have income (like rent) to offset the old mortgage. But on the other hand, someone else IS making the payments. How would most FHA and Conventional Underwriters handle this? Thanks!