Forgotten Your Password?

Need to Register?

Question Icon

Are student loans in deferrment included in the debt to income calculation?

by hannah181 from Newark, Missouri. Oct 21st 2016 Reply

Larry Gray (lgray_312_247)
#556 ranked lender in California - 1,126 contributions

In almost all cases they are (fannie mae or Freddie mac).The best way to minimize the monthly amount used in calculating your total monthly debt to income ratio, is to get something from them that documents what your monthly payment would be if you were to pay it. They are generally happy to provide that (per government student loans at least). Otherwise the percentage used to calculate monthly debt is likely to result in a higher monthly debt.

Oct 21st 2016
William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,734 contributions

As of a few months ago, every conforming loan option will have to include projected payments into your DTI.. but the guidelines are not that simple,and they vary depending on the loan product you are applying for, but in general, any "Projected" student loan payment must be a fully amortized payment, or the lender must use 2% of the outstanding balance as a projected payment.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Oct 24th 2016
Sara Deere (SARAinMO)
#1 ranked lender in Kansas - 484 contributions

Yes it is

Nov 2nd 2016
Subscribe to our news feed.