How Student Loans Affect Qualifying For A Mortgage?
How do student loans affect qualifying for a mortgage?
70% of college students graduate with a significant amount of loans. Student loans balances are climbing every year and it can greatly affect these borrowers when they try to get approved for a mortgage. Tom and Eddie address the impact of student loans on mortgage and which loan programs are more ‘student loan’ friendly.
– Conventional loans will allow $0 payment if borrower has income based repayment plan setup. If borrower loans are in deferment, we will need to count 1%.
– FHA and VA require 1% minimum rule. If borrower is in repayment, we need to use the greater of the monthly payment on the credit report or 1%