N.M. Admin. Code § 12.15.3.7

Current through Register Vol. 35, No. 23, December 10, 2024

Section 12.15.3.7 - DEFINITIONS

For purposes of this rule, the definitions set forth in the act shall apply unless otherwise noted.

A. "Grossed up income" means income that is not taxable by the federal government and has been increased to reflect the amount of tax savings attributed to this type of income. The maximum amount of grossed up income allowable is twenty-five percent, but could be less based on the tax savings of the borrower. (Example: Non-taxable income is $1000.00 per month. Assuming a tax savings of 25%, the allowable grossed up income would be $1250.00 per month.)

B. "Scheduled long-term monthly debt payments" means the monthly payments of all installment debts, revolving charge accounts, open accounts and lines of credit that would be used to determine a borrower's ability to repay per the current underwriting guidelines of the federal housing administration (FHA), the federal national mortgage association (FNMA), the federal home loan mortgage corporation (FHLMC) or the department of veteran's affairs (VA).

N.M. Admin. Code § 12.15.3.7

12.16.3.7 NMAC - N, 1/23/2004; A, 06/01/10