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Want to get a home loan, but I have student loans of 35K (deferred for 2 years). Will these be counted against me?

by asheigh234 from Walnut Grove, California. Nov 2nd 2016 Reply


It will not count against you since its deferred. Michael BananLoan officer 858-866-4747

Nov 2nd 2016
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Unless you geeting an fha loan lender will count it. You will need to provide future payment letter so lender can count it. Thanks

Nov 2nd 2016
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Rebecca Brown (rbrown@bayeq.com)
#1404 ranked lender in California - 3 contributions

It depends on what type of loan you are trying to get. FHA and Conventional have different guidelines where they can count up to 2% of the balance as a payment. There are also many ways of getting you student loans to show a very low payment based on different plans. There are many ways to work around this! Please feel free to email me at rbrown@bayeq.com and I can maybe help figuring out the best direction to go!

Nov 2nd 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,641 contributions

More info needed, but in general, deferred student loans will be counted against you in some fashion with all lending programs.. however the guidelines vary as to how much the lender is required to put against your debt to income ratios.. Conventional say 2% of the outstanding balance.. so $700 per month in your scenario.. If however, you can get a letter from your student loan lender stating what your actual payments will be once you come out of deferment, then so long as that payment is a "Fully Amortized" payment, then they will use that payment instead of 2%.. FHA just clarified a guideline regarding Income Based Reduced (IBR) payments.. but this only applies once you are out of deferment.. since you are in deferment, FHA requires us to use 1% of the outstanding balance ($350 per month for your scenario) or the actual payment just like conventional. 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 WilliamAcres.com NMLS# 226347

Nov 3rd 2016
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Mathew Carson (mathewc)
#1417 ranked lender in California - 3 contributions

Yes, either 1% of the balance, or, the monthly payment if you can prove what that will be.

Nov 2nd 2016
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Mathew Carson (mathewc)
#1417 ranked lender in California - 3 contributions

Either 1% of loan balance, or, provide evidence of future payment amount.

Nov 2nd 2016
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Larry Gray (lgray_312_247)
#2 ranked lender in California - 1,087 contributions

William Acres has answered your question well, and as an experienced mortgage planner and originator who has had many residential loans with deferred student loans, I have to concur with him on this. We used to be able to not count deferred student debt...at least if deferred for 3 years...but that is not the case anymore. The letter obtained from student loans (per FEDs) tend to allow for the smallest monthly payment to include in your overall debt to income ratio, then using the percentage requirement for establishing what the monthly debt is to be used.

Nov 4th 2016
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