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A self-reported utility account is not automatically an installment loan just because it appears on your credit report. The lender needs to identify the actual obligation before deciding how it affects the mortgage calculation. A separate loan used to pay a utility bill is a different question.
The question that came up
In an origination discussion, I questioned several self-reported telecom entries. The team confirmed that it omitted those self-reported utilities. That was an answer about those entries, not permission to remove every payment with a utility company’s name on it.
The useful distinction was between information added to a credit history and a debt that the borrower actually had to repay. Starting with that distinction made the review more precise than simply asking whether the credit report was right or wrong.
What I would ask to see
Ask for the list of monthly obligations used in your debt-to-income calculation. Match each unfamiliar item with an account statement or agreement. Is it an ordinary service bill, an installment purchase for equipment, a financing account, or an overdue balance with a different status?
Fannie Mae’s liabilities guidance requires lenders to document relevant debts and their repayment terms. The program and the actual obligation matter. A credit-building service’s presentation does not establish the mortgage treatment by itself.
Keep both budgets honest
An expense can matter to your household even when it is not part of the lender’s debt calculation. Phone service, electricity and other recurring bills still use money you need each month.
I would keep two lists: the obligations used to qualify and the expenses that shape your comfortable payment. If an entry looks wrong, request a documented review before making a housing decision around a revised ratio.
Sources and further reading
Talk through your question
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Published September 13, 2026. Adapted from an origination discussion. Identifying details are omitted. Unconfirmed outcomes are not presented as completed loans. Program and lender requirements need an individual review. Nick Cunningham, Loan Officer, NMLS #907393. Mortgage services through Golden Bay Mortgage Group.
