IBR or Deferment

[NewStart2012]

Hello!!

I am getting ready to apply for a home loan next month and have been researching IBR (income based repayment) and getting a mortgage. My payment will be $107.XX until I re-apply next year. Will the mortgage company use what is listed on the credit report as the payment or will they want something from the student loan servicer? I am asking because if they do request it from the servicer then it will show that for 11 months my pymt will be $107.XX and $527.XX, if I don't re-apply for the IBR, for the next 30 years. This will kill my back end ratio...

Thanks,

NewStart

[Booner72]

They use what is listed on the credit report. They didn't bat an eye when I went through the process. Just be sure that your payment doesn't change during the process. Mine did, so I called up the servicer and asked them to report my new (higher) amount immediately, which they did, so there was no question.

[NewStart2012]

Thanks for the reply, Booner72. After they report the new payment at the end of this month is when I will apply. I was supposed to apply in March, but every month something comes up and am unable to do so, but I am hoping that June will be the month. Would like to be in a home before school starts again in August. 

NewStart

[Booner72]

Good Luck! Applying and getting approved is the easy part. It's finding the house and closing the deal that's rough! My student loan payment was one thing when I applied and another when I closed - both met the DTI requirements so it was okay, I would think that could be your only potential problem. If you haven't found a lender, I had great luck with Academy Mortgage, and others have let me know they did, as well, after they took my referral. I get no kickback from it - just spreading the word to others that they were a solid company that worked hard for me.

[NewStart2012]

I looked them up and it looks like they have an office in Cincinnatti, Ohio, but I am much closer to Cleveland. Do you happen to know what their minimum score is?

NewStart

[Booner72]

 From what I was told back in 2011, they loan down to 620, but it's a higher interest rate than 640+.  They didn't have any guidelines more strict than the FHA guidelines themselves.  My credit was TANKED so it was a miracle I made it!  You can do all the paperwork by fax and email so you really don't NEED an office, technically, you can do a phone interview - If you don't like that person, then Forgettabout it.  Other lenders go down to 620.  My advice?  Wait to 640.  Just easier.

[NewStart2012]

I will keep them in mind when it comes time to apply. My mid-score right now is EQ @ 639. My TU here is at 661 and my EX through PSECU is 623. I paid off a credit card down from $993 to zero with a credit limit of $1400. I am hoping this will give my score a boost, but I noticed that this particular card has not reported anything since 3/22. I will be calling them Monday to find out why they did not report in April.