Best Loan for 100k student debt?

[Anonymous]

I have 100k in student debt. No auto, cc debt, or any other debt. 80k income. All FICO scores above 760 (including the mortgage ones). I have 40k in cash for down payment. Should I go with FHA or traditional loan? Please help! 

[Talima719]

I would think that depends on the price range of the home you are considering. Scores wise, you shouldnt have a problem qualifying for either FHA or conventional at the best rates.  Also, are your loans in repayment status?

[Anonymous]

Are they deferred or do you currently have a payment on them?

[youdontkillmoney]

If you are in a profession that is high paying and got into student loan debt to get the degree (i.e. medical doctor, lawyer, etc), SoFi may be an option since they lean a lot on potential earnings and income despite debt, though still an important consideraiton.

[Talima719]

---

@youdontkillmoney wrote:

If you are in a profession that is high paying and got into student loan debt to get the degree (i.e. medical doctor, lawyer, etc), SoFi may be an option since they lean a lot on potential earnings and income despite debt, though still an important consideraiton.

---

Interesting. Never knew that. Thanks!

[Anonymous]

Does the 100k in student rate affect potential interest rate also or just DTI? With 100k, should I go for FHA loan or conventional loan? Why?

[Anonymous]

The student loan won't affect your rate. It will only affect your DTI. Are they deferred or is there currently a payment? If it's in repayment, is it fixed or income based repayment? The student loan likely won't affect which loan program you use, and will moreso affect the amount you qualify for.

[Anonymous]

My graduation was two weeks ago so I do not need to make payments on the loan until December. If I make fixed payments for 25 years, my payments will be somewhere around $700 per month. This would be less than the amount that I would have to pay based on the new 1% rule. Which of these two amounts--700 or 1%--be used for DTI purposes? Also, which of the many FICO scores are used for mortgage? My FICO 8 scores are all above 760. Thanks for the help!!

[dragontears]

---

@Anonymous wrote:

My graduation was two weeks ago so I do not need to make payments on the loan until December. If I make fixed payments for 25 years, my payments will be somewhere around $700 per month. This would be less than the amount that I would have to pay based on the new 1% rule. Which of these two amounts--700 or 1%--be used for DTI purposes? Also, which of the many FICO scores are used for mortgage? My FICO 8 scores are all above 760. Thanks for the help!!

---

My understanding of the rules, if you are on the extended repayment plan it will use that actual value (in your case 700) rather than the 1% since you can show a fully amortized loan pay off.

 When you pull your 3B report here there is a section that says "commonly used in Mortgage lending" but it is EQ5, TU5 and EX2

[Anonymous]

Thanks!  My scores are as follows:

EQ5: 751

TU4: 779

EX2: 773

Will they use the lower of my three scores (the 751)? Is there a significant difference between my three scores? Thanks!