How does student loans affect mortgage approval

[Goodscore81]

My husband and I have just submitted documents to obtain a preapproval for our first mortgage.  In our minds, we think we're in a good spot to start shopping for a mortgage loan.  Well the loan officer comes back to us saying our DTI is too high because of my student loans and his car loan.  They are estimating for my loan payments to be somewhere in the area of 800 per month.  At this time, I am not even required to make payments.  My credit report supports this and also the letter from my loan servicer.  How would someone with student loans ever qualify for a home loan?  

[Anonymous]

Hi! What kind of loan are you applying for? How long are you student loans deferred for? 

[Anonymous]

Your monthly student loan payments would be part of the "D" in your DTI... just like any other debt.

[Anonymous]

Yep ^ and if you're not on a payment plan, the mortgage lenders don't know what number to use, so sometimes they assume 1% (or whatever % they decide upon) of your student debt to be the monthly payment. It'd be in your best interest to set up a payment plan now. They generally want regular payment plans that aren't income based so they know you'll always be paying X amount each month.

[Anonymous]

I believe the FHA does not factor in your student loan, if it is deferred for atleast 12months..... so the "D' in that case does not count. 

[StartingOver10]

I am looking for the information now, but I believe that FHA is including student loans beginning in June 2015.

Will post link when I find it. 

EDIT:  Here is the link posted by Shanethemortgageman Feb 24 2015  http://ficoforums.myfico.com/t5/Mortgage-Loans/FHA-changing-guidelines-on-deferred-student-loans-6-1...

[Anonymous]

Title on this thread is-  

"How does student loans affect mortgage approval"

I can answer that- badly.

[Goodscore81]

I'm looking to get an FHA loan. My student loan payment is $0 until November. Then I have to resend my tax returns for them determine my new payment. They are trying to use 2% of my loans as the Payment. 

[Anonymous]

To the OP, pls talk to your LO about this. I am pretty sure the FHA does not factor your student loan when deferred for "at tleast 12 months". Why am i so sure? because my DW does USDA, FHA loans. i asked her this question and thats the answer she gave..... hence my contribution. Talk to the experts before you get discouraged about your mortgage approval and student loans. 

[Anonymous]

so apply before the new regulation goes in effect June 15