Getting mortgage with student loans

[Skye12329]

Last year DH and i tried applying for a mortgage but got denied due to him having old baddies which fall off this year. However when we applied, the person doing the loan mentioned if i can get letters confirming my student loans will be deferred till 2017 it would help a lot. Has anyone heard of this?

Im still in school, so my loans will continue to be deferred. But DH and i will be possibly going for a mortgage in roughly 2 years. This will allow us to save a little for a down payment we hope. But do you think the student loans will be an issue again?

[Anonymous]

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@Skye12329 wrote:
Last year DH and i tried applying for a mortgage but got denied due to him having old baddies which fall off this year. However when we applied, the person doing the loan mentioned if i can get letters confirming my student loans will be deferred till 2017 it would help a lot. Has anyone heard of this? This would have been beneficial under the old rules but would do more harm than good now. Old rules allowed deferred payments to not count in the DTI if you were going with an FHA or VA loan.

Im still in school, so my loans will continue to be deferred. But DH and i will be possibly going for a mortgage in roughly 2 years. This will allow us to save a little for a down payment we hope. But do you think the student loans will be an issue again? Student loans will be counted as what you pay (FHA & VA) or the greater of 1% and your actual payment if you go conventional.

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[ashjt2011]

In the old rules they wouldn't be counted. Now they require them be counted, regardless of how long it is until they go into repayment.

All I had to do is get a letter from Great Lakes (my student loan lender) stating my projected payment based on my income based projection plan and my mortgage lender was fine with that.