FHA Loan Qualification

[Anonymous]

Like many recent graduates, I have a lot of student loan debt, $163,000 to be exact from undergraduate, graduate and professional school. I want to buy a house right now and have the credit scores to qualify but that student loan debt is whats hanging over my head.  The lender my husband and I met with said he qualifies with some work, example: paying down about $4000 in credit card debt because he's a max out king, and we need his score to jump almost 50 points to qualify whereas my credit score is where it needs to be but my student loan debt takes me out of the running. I am not to happy about the recent changes where IBR or REPAYE are not considered valid repayment options, it makes a $1500 difference in my DTI ($162 payment versus 1% or $1620).

Does anyone know of any options I have to qualify, other than going the conventional route and gettin a 20% downpayment?

[jasbo]

I really thpugh that IBR were accetable.

[Sbrooks1]

Take your loans out of IBR during the course of your mortgage and when it's over apply to put them back. All can be done online relatively painless. Or save the 20%. FHA will use 1% of balance , no way around it

[Sbrooks1]

Unless the IBR will fully amortizi the loan, which with loan amounts that high is very unlikely

[Anonymous]

1% is 1620, which takes me out of contention completely based on DTI

[Anonymous]

Standard repayment moves it to 838 and graduated payment moves it to 740 which still seems to boot me out of the running in my opinion with a current annual income of only 42000 and a car note of 399.40 with no other debts.

[Sbrooks1]

It is an unfortunate thing. I'm not versed enough to offer any more options than come out of IBR vs convential. What about Wells Fargo my first mortgage, I believe it's only 3 % down

[onstar]

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@Sbrooks1 wrote:
It is an unfortunate thing. I'm not versed enough to offer any more options than come out of IBR vs convential. What about Wells Fargo my first mortgage, I believe it's only 3 % down

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Adding to this:

You can do a Freddie Mac loan with 3% down. Freddie will accept IBR monthly payment amount as long as it is greater than $0.

I know WF does a 3% loan through Fannie; not sure about Freddie.

Ask you lender about doing a 3% loan through Freddie.

[darkchild0813]

Someone posted about a lender named Guaranteed Rate. They loan Freddie Mac mortgages. Look there or maybe a local credit union.