owner finance and DTI

[Matthew Wright]

If I were to be the buyer in an owner finance scenario, is there any way that would make it to my credit, in terms of it being visible as a debt? This is important, since there wont be any income in this case, to off set the debt, since it will be raw land that I'm looking to owner finance...

[Kyle J.]

The debt likely won't show up on your credit report but that doesn't mean it won't be counted against you for future borrowing.  Any potential lender would likely find out about it when you complete the Schedule of Real Estate Owned form.  Most lenders will ask you to fill out this form listing all the properties you own, along with info on the monthly payments, taxes, insurance, etc.  They'd also likely figure it out from your tax returns, assuming you'll be claiming deductions for the expenses (i.e. property taxes, interest paid, etc) associated with owning this land.