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what is the formula for calculating student loan debt for fha refinance? student debt is aprox 75k - what would be my payment

by sorensen.eileen1473 from Wesley Chapel, Florida. Feb 3rd 2016 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

More info needed.. specifically, is your current loan FHA, and are you considering refinancing using FHA's Streamline feature.. or do you have some other loan your wanting to refinance into an FHA loan.. the rules are different so I'll try to advise you for both.. Lenders will use one of 3 ways to come up with a payment.. First, if you provide them with an anticipated payment from your Student loan lender, they will use that payment.. If you applied for a IBR (Income Based Repayment) reduced payment, and got approved, then they will use the IBR payment.. if you don't have an IBR payment, or your loan servicer will not tell you what your payment will be once it comes out of deferment, then in most instances, the lender has to use 2% of the outstanding balance which for your $75K in debt will be $1500 per month.. it's unlikely your payment will be that high, but if you cannot document your actual payment after deferment, then the lender must use this.. However, if your applying for an FHA streamline refi, then your Debt to Income ratio (DTI) is not considered.. Most lenders will do a FHA streamline without income qualifying.. Meaning they don't need tax returns, pay stubs or W2's, and it also means that it really dosent matter what the student loan payment is.. If you want to know for sure if you qualify or not, then you should try contacting a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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

Feb 3rd 2016
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Louis Doherty (ldoherty@prmg.net)
#292 ranked lender in Florida - 2 contributions

The banks require that we there be a minimum monthly payment for student loans even if they are in deferment. If the credit report doesn't show a minimum payment, then we would use 2% of the balance. On a $75,000 balance, the monthly payment would be $1500.00.If there is a payment provided by the student loan organization, we would use that rather than our calculation.

Feb 3rd 2016
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Preston Ware (preston@prestonware.com)
#293 ranked lender in Florida - 3 contributions

1% or the payments or what is on the credit report. If you want to try to consolidate those debts, go here. Studentloans.govPreston Wareserving Floida561-329-0075

Feb 3rd 2016
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Preston Ware (preston@prestonware.com)
#293 ranked lender in Florida - 3 contributions

1% of the balance or the payment listed on the credit report. If you wish to consolidate go here: Studentloans.govPreston WareFlorida561-329-0075

Feb 3rd 2016
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Larry Gray (lgray_312_247)
#563 ranked lender in California - 1,127 contributions

Generally you do not want to have to use 2% of the payment calculated into your debt to income ratio. You definitely want to get something from your lender that gives a monthly payment. If you can consolidate your student loan debts you will get one single payment (i.e. from government loans particularly.) It sounds like you might currently have the debt deferred but do try and get the best on paper you canfor what it would be if not deferred!

Feb 3rd 2016
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Larry Gray (lgray_312_247)
#563 ranked lender in California - 1,127 contributions

You generally do not want to use 2% of the total debt as the monthly payment calculation to add to your debt to income ratio.

Feb 3rd 2016
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

Normally it is best to use the actual projected payment provided by the student loan company (s).

Feb 3rd 2016
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