Short answer
It counts unless you can show someone else pays it. Under Fannie Mae's rules, the lender can leave a co-signed car loan, student loan, credit card or lease out of your debts if the other person has made the payments for the most recent 12 months with none late, proven with their canceled checks or bank statements. A co-signed mortgage can be left out on similar terms if the person paying is also on that mortgage.
What proof does the lender need?
The most recent 12 months of canceled checks or bank statements from the person making the payments, showing every payment on time. Statements that show the payments coming from your own account won't work, even if they pay you back. If they've only been paying for a few months, the payment usually counts until they reach 12.
What if I co-signed someone else's mortgage?
The full monthly housing payment can be left out if the person paying is also on that mortgage, there have been no late payments in the last 12 months, and you aren't using rental income from that home to qualify. Being on another mortgage can still matter for other rules, such as how many financed properties you have; see how many financed properties you can have.
Does the co-signed loan affect my credit score?
Yes. The account appears on your credit report, so a late payment by the other person hurts your score too. Check your reports before you apply; see credit and your mortgage.
Do FHA and VA loans work the same way?
FHA's rule is close to Fannie Mae's. HUD's Handbook 4000.1 counts a co-signed debt in your monthly obligations unless the lender documents that the other person has made 12 months of on-time payments, or that the creditor can't come after you if they default. When a divorce decree or other court order makes someone else responsible, the 12-month payment record isn't required.
Each program has its own rule for co-signed debts, and the documents can differ. Tell Tom about any loan you've co-signed when you start, so he can check it against the program that fits you. If someone is co-signing for you instead, see co-borrowers and cosigners.
Sources
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Contingent Liabilities (TOTAL)
- Fannie Mae Selling Guide B3-6-05, Monthly Debt Obligations (debts paid by others)
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.