I am now a little over a week from closing and am being asked for something showing that my student loans will be deferred for 12 months after closing. That is not possible because i am in a foreberance and it is no way to show that it can be extended for 12 months after this one ends. I can show from studentloans.gov that my loans will be $0 on the IBR when i apply i just do not know what to do i called my realtor and the LO and I am freaking out. This is the only thing that i can not provide will this stop my process or get me denied for my house. I AM SO SCARED at this point
Our broker would not do the loan while my student loans were on forbearance. I had to put them in repayment status, make the first payment, and then turn in a statement from the bank showing the payment cleared my account. If the loans are deferred, it is ok, but if they are in forbearance, you can't get the loan.
Starting scores 2/27/12 TU 605 EX 576 EQ 560 Current scores lender pull 9/6/12 TU 663 EX 629 EQ 645 Closed on our first home 10/26/2012!
i am trying not to get discouraged we have spent over $2K and we are in love with the house i really wish that they told you everything when they see you credit and information to let you know if it is a go before you spend your money i do not want to take them out of foreberance it time that you allowed to use i did not get a hardship or anything its just available and i think i should be able to use it. Plus the amount that they show my payment to be is way higher than what it will be on the IBR it shows i would owe nothing i do not know what i could do about that. This is so frustrating.
I believe, but I am not positive, that the reason they would not issue a mortgage while your loans are in forbearance, is because you can only get approved for forbearance if you have a financial hardship or an illness.
If you are currently in the midst of a hardship, than adding a mortgage loan to the mix will increase your hardship rather than reduce it. So getting a mortgage would seem to be the worst thing you could do if you are already having a hard time with your finances. The underwriter wants to make sure the mortgage is going to be repaid and giving a mortgage to someone in financial distress is not going to pass guidelines for the funding bank.
That is exactly what they told me. I put my loans in repayment, made a payment, closed on the house, and then put them back in forbearance. I wanted to use that monthly payment for house stuff. They were originally in forbearance so I could pay off some other debt before we bought the house.
Starting scores 2/27/12 TU 605 EX 576 EQ 560 Current scores lender pull 9/6/12 TU 663 EX 629 EQ 645 Closed on our first home 10/26/2012!
so does anyone have any experience with teh income based repayment because i qualify for it with $0.00 paynent so that would be fine as well. How does the underwriter look at that. Sallie mae is telling me that they can give me a letter showing that the exstimated payment on the IBR plan is $0 and it runs for 12 months. I really do not see how that is any different from a foreberance and i am not in a hardship i did not have to prove that i was the loan servicer is required to offer foreberance so i use it. I am not sure that the only reason you can get one is due to a hardship. Any experience with the IBR plan?
Starting Score: 674 Apr 2013