A straight answer
Can a business loan my company pays be left out of my mortgage debts?
The direct answer
Yes, I offer mortgages where a loan in your name that your business pays stays out of your personal debts once the file proves it. Fannie Mae leaves it out when the business documents the payments, the account has no late history, and the business cash flow analysis counts the payment.
I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente. I put the financing together, and I tell you plainly which program fits. I work with homeowners in California, Utah, Oregon and Arizona.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-19
A loan in your name that the business pays? Text me what it is, how long the company has paid it, and whether you are buying or refinancing.
This situation is worked out in a short conversation. No credit pull happens from a conversation. The options check is a soft credit pull with no impact on your credit score for the first look. Texts go to Zach's cell.
What does Fannie Mae require on a mortgage?
Fannie Mae's guide covers "a monthly obligation that appears on their personal credit report (such as a Small Business Administration loan)" that the business pays (Fannie Mae Selling Guide B3-6-05).
The lender must verify the obligation "was actually paid out of company funds" and that this was considered in the cash flow analysis of your business.
The payment stays out of your debt-to-income ratio when three things are true.
The account "does not have a history of delinquency."
The business provides acceptable evidence it paid the debt "(such as 12 months of canceled company checks)."
The lender's cash flow analysis of the business already counts the payment.
When does the payment still count against me?
Under Fannie Mae's guide, the payment stays in your debts if the business cannot show it paid from company funds.
It stays in if the business cash flow analysis shows no business expense for the debt.
It stays in if the account has a history of delinquency.
So a debt the company pays on paper, with no expense on the business return, still counts.
Do Freddie Mac and FHA use the same rule?
Freddie Mac's rule is close. Its guide lets the payment be excluded when the file shows "the debt has been paid timely by the Borrower's business for no less than the most recent 12 months" and the tax returns show the related business expenses (Freddie Mac Guide 5401.2).
FHA's rule turns on the business return. HUD's handbook says the debt is counted "unless the Mortgagee can document that the debt is being paid by the Borrower's business, and the debt was considered in the cash flow analysis of the Borrower's business" (HUD Handbook 4000.1).
I read the rulebook your loan follows before anything is counted.
Example: a contractor's truck loan
Say the truck loan is in your own name and shows on your personal credit report.
Assume the company has paid it from the business account every month for the past year, with no late payment.
Assume the business return shows the interest on the truck as a business expense.
On a loan sold to Fannie Mae, those three facts are what the lender checks before leaving the payment out.
If the company paid it from your personal account instead, the business has not shown it paid from company funds.
What about a bank statement HELOC?
The bank statement HELOC I offer is underwritten on consumer debt.
Its review looks at your personal debts, not your business debts.
Fannie Mae's rule above is the rule for mortgages, and it does not decide the HELOC.
The page on a HELOC for business debt covers paying those balances off with the line.
What about a bank statement mortgage?
I offer loans qualified on 12 months of personal or business bank statements instead of tax returns. Those programs sit outside the agency guides, so the program's own debt rules apply, and I confirm them on your file. The bank statement loan page explains the method.
What should I send first?
- A list of the debts in your name that the business pays.
- Twelve months of business bank statements or canceled company checks showing each payment.
- Your last two business returns, so I can find the expense for each debt.
- Whether you are buying or refinancing, and the state.
Send documents through the secure process I give you when we talk, not by ordinary text.
Questions people ask next
Does the same rule apply to a credit card the business pays?
Fannie Mae writes the rule for any monthly obligation on your personal credit report that the business pays, with a Small Business Administration loan as its example. The same three conditions apply.
What counts as proof that the business paid it?
Fannie Mae's example is 12 months of canceled company checks. Freddie Mac asks for evidence the business paid on time for at least the most recent 12 months.
What if the business paid late once?
Under Fannie Mae's guide, a history of delinquency on the account keeps the payment in your debts.
Does a bank statement HELOC count my business debts?
No. The bank statement HELOC I offer is underwritten on consumer debt, so its review looks at your personal debts, not your business debts. The Fannie Mae rule on this page is for mortgages.
Does leaving the debt out take my name off it?
No. The qualifying calculation is the lender's math, and your name stays on the debt.
Does asking about this affect my credit?
A conversation does not pull credit. A full application does.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
Word for word from Experience.com. Read all reviews.
Sources and checked dates
Sources: Confirmed by Zach, October 19, 2026 (9:29 PM PT, via the Chief of Staff) (checked 2026-10-19) · Confirmed by Zach, October 2026 (checked 2026-10-19) · Fannie Mae Selling Guide, B3-6-05, Monthly Debt Obligations (08/05/2026) (checked 2026-10-19) · Freddie Mac Single-Family Seller/Servicer Guide, Section 5401.2 (effective 08/05/2026) (checked 2026-10-19) · HUD Handbook 4000.1, Update 18 (last revised 8/12/2026) (checked 2026-10-19) · Confirmed by Zach, October 17, 2026 (checked 2026-10-17) · West Capital Lending HELOC registration page (referral id omitted here) (checked 2026-09-09).
Show each claim on this page, what it depends on, and the date it was checked (7)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Zach offers financing for these self-employed situations: a HELOC to pay off an IRS tax lien; mortgage income for S corporation owners (W-2 wages, K-1 income and distributions); a HELOC to pay off business loans and business credit cards; a divorce buyout for a self-employed homeowner; a DSCR cash-out refinance of a rental qualified on its rent; business funds for a down payment; a HELOC after a drop in self-employed income; combining a spouse's W-2 income with bank statement income; a mortgage when the business pays a debt in the owner's name; seasonal business income; bank statement loans when real business expenses are lower than the expense factor; and a mortgage when a self-employed owner moves a business into California, Utah, Oregon or Arizona. He arranges each as a broker. | Confirmed by Zach, October 19, 2026 (9:29 PM PT, via the Chief of Staff) | 2026-10-19 |
| The bank statement HELOC Zach offers is underwritten on consumer debt, so the review looks at the borrower's personal (consumer) debt, not business debt. | Confirmed by Zach, October 2026 | 2026-10-19 |
| Fannie Mae Selling Guide B3-6-05, Monthly Debt Obligations (08/05/2026), Business Debt in Borrower's Name: "When a self-employed borrower claims that a monthly obligation that appears on their personal credit report (such as a Small Business Administration loan) is being paid by the borrower's business, the lender must confirm that it verified that the obligation was actually paid out of company funds and that this was considered in its cash flow analysis of the borrower's business." "The account payment does not need to be considered as part of the borrower's DTI ratio if: the account in question does not have a history of delinquency, the business provides acceptable evidence that the obligation was paid out of company funds (such as 12 months of canceled company checks), and the lender's cash flow analysis of the business took payment of the obligation into consideration." The payment must stay in the ratio if the business does not provide sufficient evidence, if the cash flow analysis does not reflect any business expense related to the obligation, or if the account has a history of delinquency. | Fannie Mae Selling Guide, B3-6-05, Monthly Debt Obligations (08/05/2026) | 2026-10-19 |
| Freddie Mac Single-Family Seller/Servicer Guide Section 5401.2 (effective 08/05/2026): "When a self-employed Borrower is obligated on a debt that has been paid by the Borrower's business for 12 months or longer, the monthly payment for the debt may be excluded from the monthly DTI ratio if the following requirements are met:" "The Mortgage file contains evidence that the debt has been paid timely by the Borrower's business for no less than the most recent 12 months, and" "The tax returns evidence that business expenses associated with the debt (e.g., interest, lease payments, taxes, insurance) have been reported and support that the debt has been paid by the business". | Freddie Mac Single-Family Seller/Servicer Guide, Section 5401.2 (effective 08/05/2026) | 2026-10-19 |
| HUD Handbook 4000.1 (Update 18, last revised 8/12/2026), II.A.4.b.iv(P) (TOTAL) and II.A.5.a.iv(K) (Manual), Business Debt in the Borrower's Name: "the debt must be included in the DTI calculation, unless the Mortgagee can document that the debt is being paid by the Borrower's business, and the debt was considered in the cash flow analysis of the Borrower's business. The debt is considered in the cash flow analysis where the Borrower's business Tax Returns reflect a business expense related to the obligation, equal to or greater than the amount of payments documented as paid out of company funds." | HUD Handbook 4000.1, Update 18 (last revised 8/12/2026) | 2026-10-19 |
| Zach offers loans qualified on 12 months of bank statements instead of tax returns, at any loan size. He qualifies the borrower on either the personal or the business bank account, whichever shows the larger average monthly deposits over the past 12 months, and business-account deposits get an expense factor. | Confirmed by Zach, October 17, 2026 | 2026-10-17 |
| On the West Capital Lending HELOC registration page, checking qualifying rates and terms uses a soft credit pull that does not affect the credit score; continuing and submitting an application requests a full credit report, which is a hard pull that may affect credit. | West Capital Lending HELOC registration page (referral id omitted here) | 2026-09-09 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-19.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.
A business loan sitting on your personal credit?
No credit pull happens from a conversation. The options check is a soft credit pull with no impact on your credit score for the first look. Text Zach first so he can review your situation. The online check covers one HELOC program, not every option he may be able to arrange. Texts go to Zach's cell.