It only counts against you for mortgage applications because it reduces your net income, just like any tax does. A rise in general Income Tax rates would have a

It only counts against you for mortgage applications because it reduces your net income, just like any tax does. A rise in general Income Tax rates would have a similar impact. It doesn't show up on your credit report, you can't miss a payment and damage your future creditworthiness, and lenders don't include the value of the loan when calculating your total indebtedness. It's much closer to a graduate tax than a personal loan for mortgage purposes.