A little frustrated with NavyFederal / Equifax Mortgage Solution

[Anonymous]

I found myself on the other end of a phone conversation today with a young lady telling me my husband and I was declined for a mortgage because of Insufficient Income to amount requested, Excessive Obligation to Income and Collection/Judgement issues. I realize that we have had our issues in the past, but OMG since my husband and I were married 5 years ago we've had NO bad credit issues! No slow pays, No missed pays, No collections!

First, without divulging too much information....we asked for a 350K loan and we make well over 10K a month. Excessive Obligation to Income didn't make sense to us as we only have both of our cars (which are 2.5 years old...loan wise) a total of 3 credit cards between the two of us that are NEVER maxed out and only equal to about 8000K all together as a credit line and we're not using more than 2000K of that at any time. Collection/Judgement...turns out that there was a comcast bill back in 2007 that we took care of immediately and thought we would be fine. She said our DTI is 53% and the VA only allows 41% which is correct but withOUT my student loans our DTI is only 29% So as I continue to inquire about this excessive income issues, the lady informs me that my student loans(which are in defferment because I'm still in school) are considered and that the take into account 2% of each student loan tradelines that you have. So my tradelines for my student loans are 27k, 15k, 6k, 6k, 5,k and 5k. By her account 2% of each of those would equal out to roughly $1330 a month added on to my monthly bills because in thier words I have to pay those back eventually. I agree ....I do have to pay those back, but not at the tune of 1300 a month even when it is time for them to kick in. SO I say all that RANT to say...

How are student loans truly factored into getting a mortgage? What am I missing....

[tsu1112]

I am no expert by any means but I consolidated my student loans which might help in your case as well.

[indecison]

I think I would find another lender at this point. They should not be counting the student loans since you are still in school. How much longer will you be in school?

[thankfulheart]

Student loans are included in some products, regardless of deferment status, including VA from what I understand.  My student loans were reporting incorrectly and pushed my DTI over the upper limits, so I had to work to get them properly updated/reporting.  If there is no amount reporting, then I believe I read somewhere that 2% is the standard they use to calculate payments.  I thought maybe FHA excluded them if they were more than 12 months deferred? 

[Anonymous]

You know I thought about consildation but I was afraid that it would hurt more than help. Because it's like creating a new Tradeline of credit (larger and newer). BUT at the same token the old ones go away ....I was a little confused as to how to approach the consildation thing.

[Anonymous]

I'm not due to graduate until 1st qrtr of 2014