Good News and Bad News

[wynona01]

The good news is that I went to talk to a lender and my credit scores are TU 684, EQ 653, and EX 644 and I qualified for a FHA LOAN yaaaayyy.

The bad news is that these DAM student loans might be a problem, I have A LOT of them but they are still in deferment until April 2011. I am hoping something can get worked out.

If not I will just work harder to get them paid down, even If I have to get a second job. I still feel good about my scores because I worked my butt off to get my scores up. At least I passed the first step, my credit scores are where they need to be.

[DallasLoanGuy]

if you can prove deferment for 12+ months..... no problem.

[wynona01]

You know funny you should say that, because the lender that I am working with told me that the new law requires them to go ahead count the student loans. I am actually in deferment within the 12 month time frame. Hmmm, thats strange.

[Anonymous]

the reason for that is that deferrments are always conditional.  They are usually enrollment or financial based and can be revoked if circumstances change (you make more money, you drop out of school, etc).  A large % of lenders now will no longer accept a deferrment letter if there are any stipulations (although some still may) and most lenders do not give deferrment letters that just state a date for repayment to begin.  They state the repayment date, as well as the conditions for the deferrment and that the deferrment can be revoked if conditions change.

[wynona01]

Oh ok I understand, well she did suggest that I could maybe go ahead and consolidate my loans to get the lowest payment so it can show how much i will be paying. Is that even possible?

[DallasLoanGuy]

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@wynona01 wrote:
Oh ok I understand, well she did suggest that I could maybe go ahead and consolidate my loans to get the lowest payment so it can show how much i will be paying. Is that even possible?

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yes. possible. call sallie mae.

'lender guideline overlays'  remember this term. it is likely that your lender has guidelines on top of ha guidelines(overlaid).

no new law about this

[Anonymous]

I consolidated mine went from a $498 payment to $241 makes DTI much much nicer looking..  Plus I locked in at a lower interest rate so I'm saving money.  Just a word of caution you do take a minor hit on your credit scores (I took about a 15 pt hit) with having accounts paid and closed and adding a new account.  Takes awhile though mine took almost two months to fully consolidate.

[wynona01]

Thanks a bunch, I will keep you updated on how everything works out.

[ArmyStrong]

Good luck!