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How many months left on debt to not consider it when qualifying for a mortgage?

I heard from a friend that if a car payment (or any debt for that matter) is below a certain amount of payments left, it is not considered a debt (for your debt/income ratio) when qualifying for a mortgage. Is this true? How many months left until it is not considered? Thank you!

Public Comments

1. All debt is considered, however if your debt to credit ratio is below 30%, that is looked on more favorably when the bank pulls your credit report.
2. You friend was probably talking about long term and short term debt. Long term is any debt that is going to be paid in more than 12 months, and shot term debt - within 6 months.
3. Yes, it is true. All Debt is a factor (car payments, credit cards, other types of loans). Debt also affects your credit and this can affect the Interest Rate you get on your mortgage. The amount of debt you have , because you will have less money available for a mortgage payment, will also affect the amount you are able to borrow. if you owe less then half of your balance on your car, you should not have any problems. Paul A - www.loankit.org