What's the latest regarding student loans?
Does anyone know if lenders are still using a .05% to account for student loan payment if I want to buy a home? My loans are at $150k and I don't have that much income right now. Things have not been good since the pandemic and I can't keep up. Not sure what's the latest guidelines when it comes to student loans. Does it change depending on the type of loan I apply for? by normandenise687 from Denver, Colorado. Jan 13th 2023
John Burke (jburke)
#27 ranked lender in Texas - 321 contributions
Hi Normandenise, It depends on the type of loan and the status of your loans. For example: Fannie Mae allows lenders to use the IBR payment even if it's zero per month while FHA requires us to use .5% of the balance if the payment is zero.| John Burke | Senior Mortgage Banker | Lending in ALL 50 states | www.yourtexasmortgagelender.com|Stride Bank | jburke@stridebank.com | (877)228-9069 | NMLS# 787231 |
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Not only are the student loan rules confusing, they are also ever changing. I keep an updated web page with the rules for all the main mortgage loan programs. Take a peak at https://joemetzler.com/student-loans/ I lend in MN, IA, ND, SD, and WI. | Cambria Mortgage, NMLS 274132
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
If your payment doesnt appear on credit report - then either .5% or 1% of the balance will be used for qualifying purposes ...if your loan happens to be an income based repayment ( IBR) loan - try to get the loan servicer to report a payment based on your income as there are some loan programs will use a IBR payment IF it appears on credit report -Dave SKow Movement Mortgage 206 714 9745 dave.skow@movement.com NMLC 278613
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