Hello Joel, Student loans dont count againts your DTI if they are deferred while you are schooling. DTI is calculated by taking your mortgage principal payment, interest payment, taxes, insurance, any mortgage insurance and or HOA dues. and adding in all of your other debt payment, car loans, credit cards, alimony, child support ect. Take your total debt and divide by your income. ie. 1500 monthly debt with mortgage, and you make 5000 a month 1500/5000 = 30% DTI. You want to stay under 45%. Some exceptions can get you to 50 or 55% on FHA loans. Hope this was clear!!!!Mar 18th 2011
In order for you student loans not to be considered into your DTI, they must be deferred for at least one year. You'll have to provide verification of this deferment and time period in writing. Standard DTI max. is 50%. However, we can go to 60% with compensating factors such as assets, job time etc.Mar 19th 2011
Joel - If this is a Fannie Mae or Freddie Mac loan the student loans WILL count against your DTI. Please view the link page 465.https://www.efanniemae.com/sf/guides/ssg/sg/pdf/sel012711.pdfIf this is an FHA mortgage and the student loans are deferred for more then 12 months they can be removed from your DTI.Mar 19th 2011
For a conventional loan, all student debt payments are counted in your DTI, even if in deferment. If and FHA loan, and verification of deferment can be made for at least one year from the closing date, then you do not include in DTI.For conventional loans, DTI max is usually 45%, but can be lower in certain circumstances depending on credit. For FHA =, the DTI max is usually 55%, but again, may be lower depending on credit. I hope this helps.Mar 19th 2011
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