Mortgage approval with student loan deferment

[Anonymous]

How will a deferred student loan affect my chances for a loan approval?  The amount is over 100000.

[Anonymous]

swmom,

It won't affect it at all.  Nor was it averaged into my DTI.  It helps because it shows a steady payment history.  I went FHA and it was not a factor.

[ShanetheMortgageMan]

It depends on what type of mortgage you are qualifying for.

For USDA & conventional financing, the payment on a student loan (whether deferred or not) is always included in the debt to income ratio, even if the repayment won't start for many years.

For VA & FHA financing it'll be included in the debt to income ratio unless it is deferred for 12 months from the closing date.  Documentation is needed stating when it will begin repayment or deferment will end, this could be listed on the credit report or a statement from the student loan creditor.  Ambiguous statements such as "deferred for 6 months after graduation" do not work since graduation isn't ever guaranteed and someone can quit going to school at any time.

[Anonymous]

Mine was deferred for over 12 months from time of closing.  I went on the Direct student loan website and printed documents from my account and submitted them.