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I have nearly 200K in student loan debt. I make about $55K a year, I work for the Government (7 years now) and I'm in the Public Service Student Loan Forgivement program, but my loans will not be forgiven for several more years. My montly payments are based on income and thus are about $700 a month. My debt to income ratio is about 20% without the mortgage payment. Will the massive student loan debt prevent me from qualifying for an FHA loan? My credit score is around 620 and I have about $10K for a downpayment.

by danalando898 from , Arizona. Nov 4th 2013 Reply


Rocke Andrews (mortgagerock)
#98 ranked lender in Arizona - 10 contributions

With FHA ypou can go up to higher debt to income ratio, but we will still have to count the student loan payments.You will want to keep your housing payment around 30%. You can also look at an FHA 5/1 arm. The payment will be fixed at a lower rate and wont change until your student loans have dropped off.

Nov 4th 2013
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Mike Tompkins (mike@wjbonline.com)
#55 ranked lender in Arizona - 4 contributions

You have options and we can fund FHA purchases with a 620 mid FICO. Feel free to contact me direclty. 480-421-1151

Nov 4th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,247 contributions

You should be able to purchase something, it's not how much you owe but how much the required monthly payment is. If I were working with you the questions I'd ask are: why is your score 620? And, what is the maximum monthly payment you will feel comfortable makiing within your budget. As pointed out, with FHA loans approval is sometimes possible with DTI as high as 50-55% but you still have to be comfortable with the payment.

Nov 5th 2013
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Jill Beiler (Jill_Beiler)
#134 ranked lender in Arizona - 9 contributions

No this will not prevent you from obtaining an FHA loan. We also offer the 1/2% down FHA loan if you don't want to put a lot of money down.Jill BeilerArizona Wholesale Mortgage Inc.602-358-8717

Nov 15th 2013
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