How Student Loans affect you when applying for a Mortgage....

 Underwriting Update:
 
Student Loan Repayment Rules: FHA, VA & Conventional Comparison Chart

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​By:
Rene Vila
(chart below provided by Columbus Capital Lending)​
     
                   Understanding how student loans affect your FHA,VA, & Conventional loan products.  To simplify what the chart says:

•    FHA loans -
  
  • if you have a current student loan and they are not deferred the current minimum payment shown on the credit report will be used​​
    • example: outstanding balance $5000 / minimum payment $38
      
    • Minimum payment of $38 will be used as borrower liabilites
      
  • a deferred student loan must be included in borrowers liabilities. You will get the current balance shown on the credit report and use 2% of the outstanding to establish a monthly payment .
    
    • example:  outstanding balance of $5000 X 2% will result in a $100 monthly payment to be used as borrower liabilities.
      
• Fannie Mae
  
  • if you have current student loans regardless if they're deferred or not you will use the outstanding balance shown on the credit report and multiply by 1%
    
    • Example: outstanding balance of $5000 x 1% will result in a $50 monthly payment to be used as borrower liabilities.
      
      • If minimum payment is higher than 1% of the outstanding balance the minimum payment will be used. ​

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 As always if you have any questions or concerns feel free to contact me anytime. If you feel this content was useful please feel free to like below and share throughout your social media channels!

​Until next time!
-Rene The Mortgage Guy​