Fannie Mae: Lender must include a monthly payment in the borrower’s recurring monthly debt obligation, using one of the options below to determine this amount:
- 1% of the outstanding balance
- The actual payment listed on the credit report
- A calculated payment that will fully amortize the loan(s) based on the documented loan repayment terms.
- Loans that are deferred or in forbearance with no documentation require that 1% of the balance be considered when qualifying.
- If the borrower is on an income-driven payment plan, obtain student loan documentation to verify the actual monthly payment is $0 to qualify the borrower with a $0 payment.
If you have student loans and you want to buy a house, you’re going to need to know what the lender will see on your credit report.
The first thing you should do is get your own credit report and scores. Experian.com gives their info to you. That’s a good start.
Download your credit report and go through line by line verifying that the student loans are correct. The lender, balance, and payment should be exactly what you signed up for. Dig out the email with the original terms and conditions for each loan so you can check. I know, it’s a drag. If you are not able or it’s not your thing, reach out to people who have the patience that you trust and they can help track it down.
If the credit report and any of the student loan servicers don’t match, contact them via the website, their website to Twitter to find out how you can resolve the dispute. It’s gonna take time, but keep things in writing as much as possible and follow up with them until they get it right.
Now, the mortgage!
Most of you will fall into the boat of being able to use 1% of the outstanding balance and still qualify but, if that does not work after finishing undergrad, going to grad school, getting your doctorate then changing to another doctoral program, you’ve found time to buy a place since you are now making money!
If you have deferments or are in a job that las long as you are there, you have no pavements, get them in writing!
And then, you can come back to us and start the only thing that will put you in the best position to buy a home, the fully underwritten preapproval! Just bookmark https:/arrivva.mortgage to start when you are ready!