Authorized User Accounts And Your Mortgage
Listed as an authorized user on a parent’s or spouse’s credit card? Those accounts can help or hurt a mortgage, and the rules change between automated approval, manual underwriting, FHA and VA.
Quick answer
Saxton Mortgage does. On a Fannie Mae conventional loan approved through DU, authorized user accounts are considered in the credit review, but the lender must confirm they accurately reflect your own credit history. On FHA, the payment on an authorized user account is counted in your debt ratio unless the lender documents that the account owner made all required payments for the previous 12 months.
How authorized user accounts are treated
Each item below is an agency rule or a requirement of at least one program we offer.
- Fannie Mae’s DU counts authorized user accounts in its credit review, and the lender still checks that they reflect your real credit history.
- On a manually underwritten Fannie Mae loan, authorized user accounts do not count unless another borrower owns the account or you prove 12 months of paying it yourself.
- With Freddie Mac’s LPA, at least one program needs proof that another borrower or your spouse owns the account, or that you have paid it for 12 months with the payment counted in your debt ratio.
- On FHA, the payment on an authorized user account goes in your debt ratio unless the lender documents that the owner made every payment for the last 12 months.
- On VA, at least one program counts the payment in your debt ratio unless the owner’s canceled checks or bank statements show 12 months of payments.
- On a DU loan, if you lean mostly on authorized user accounts, expect questions about your relationship to the owner, whether you use the card and who pays it.
Accounts you do not own
Your real history matters
Manual files are stricter
Twelve months of proof
Spouse accounts are different
FHA may count the payment
Do Authorized User Accounts Count For A Mortgage?
Sometimes. Fannie Mae’s DU considers them, Freddie Mac’s LPA asks for proof, manual underwriting mostly excludes them, and FHA and VA may add the payment to your debt ratio.
Fannie Mae describes an authorized user as someone, often a family member managing credit for the first time, who is allowed to use another person’s account. The account can build a credit history and score for you even though you do not own it. Fannie Mae’s DU takes these accounts into its credit risk review, but the lender must check that they are an accurate picture of your own credit.
On a DU loan, if you have several authorized user accounts and only a few of your own, the lender should establish your relationship to the account owner, whether you use the account and whether you make the payments. If the account belongs to another borrower on the loan, no extra review is needed. On a manually underwritten Fannie Mae loan, the account counts only if another borrower owns it or you document 12 months of being the actual and sole payer, and if you qualify by documenting your own payments, the payment goes in your debt-to-income ratio.
Government loans look at the payment. On FHA, an authorized user account’s payment is included in your debt ratio unless the lender documents that the owner made all required payments for the previous 12 months. At least one VA program uses the same 12 month test with the owner’s canceled checks or bank statements. See our debt someone else pays page.
Why choose Saxton when your credit leans on authorized user accounts
This page is for buyers whose credit report includes cards or loans they are listed on but do not own.
DU Reviews Them
Fannie Mae’s DU counts authorized user accounts, and the lender checks they reflect your own history.
Manual Files Exclude Most
On a manual Fannie Mae file, they count only if a co-borrower owns them or you prove 12 months of paying.
Spouse Accounts Differ
On a manual Fannie Mae file, a non-borrowing spouse’s account must be considered. On DU, it does not need review.
FHA Adds The Payment
FHA includes the payment unless the owner’s 12 months of payments are documented.
VA Uses Twelve Months
At least one VA program counts the payment unless the owner’s 12 months of payments are shown.
Not A Manual FHA Shortcut
Authorized user lines do not count toward FHA’s no discretionary debt factor on a manual file.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about authorized user accounts and mortgage approval.
Saxton Mortgage does. On a Fannie Mae conventional loan approved through DU, authorized user accounts are considered in the credit review, but the lender must confirm they accurately reflect your own credit history. On FHA, the payment on an authorized user account is counted in your debt ratio unless the lender documents that the account owner made all required payments for the previous 12 months.
They can. Fannie Mae’s DU considers authorized user accounts in its credit risk review. The lender still checks that they reflect your real credit history, especially if most of your accounts are authorized user accounts.
If you have several authorized user accounts and only a few of your own, expect it. Fannie Mae says the lender should establish your relationship to the owner, whether you use the account and whether you make the payments.
On a manual Fannie Mae loan, authorized user accounts cannot be considered unless another borrower owns the account or you document 12 months of being the actual and sole payer. Then the payment history counts and the payment goes in your debt ratio.
On a manual Fannie Mae loan, an account owned by your spouse must be considered when your spouse is not a borrower. On a DU loan, the lender is not required to review a non-borrowing spouse’s account.
Yes, unless the lender documents that the account owner made all required payments for the previous 12 months. If fewer than three payments were required in that time, the payment is included.
At least one VA program includes the payment in your debt ratio unless the account owner’s canceled checks or bank statements show all required payments for the last 12 months.
Talk to us first. The guides we follow treat these accounts differently on DU, LPA, manual, FHA and VA loans, and we can tell you which rules apply to your file before you change anything.
Find out what you qualify for
Send us your credit questions and we will tell you how your authorized user accounts are likely to be treated before you apply.
Get Pre-Qualified- Fannie Mae, Selling Guide B3-5.4-01, eligibility requirements for loans with nontraditional credit
- Fannie Mae, Selling Guide B3-5.4-02, number and types of nontraditional credit references
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.