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Student loans in deferral how does that effect my dti?

by yfreund897 from Goodland, Kansas. Oct 19th 2020 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,423 contributions

It depends on the type of loan you are applying for. If the credit report is reflecting the loans are in deferral, then for USDA, FHA, and Fannie Mae conventional loans, the minimum monthly payment is calculated at 1% of the outstanding balance. A $50,000 balance results in a $500 payment. For Conventional Freddie Mac loans, the payment is calculated at 0.50% so that same $50,000 loan results in a $250 payment. VA will treat the deferred balance at 1/12th of 5% of the loan, so the same $50,000 loan results in a payment of $209. The reasoning is that eventually you will have to start making payments and would you be able to. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000.

Oct 19th 2020
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,703 contributions

Bert gave a great answer... But to expand on it... If a payment is showing on the credit report, we use the payment on the credit report for Fannie Mae ands Freddie Mac loans. FHA and USDA loans use the greater of the actual payment OR 1% of the outstanding balance. I lend in MN WI IA ND SD. I can be reached at - NMLS 274132

Oct 19th 2020
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