07-09-2010 08:52 AM
Any advice on how to get your student loans deferred for greater than one year? I'm told that it has to be at least one year from date of closing, has anyone had any success with this issue?
07-09-2010 10:32 AM
I've never had student loans so I don't know how, but I have seen it done with some student loan creditors, and have seen it be explained as impossible by others. Who are your creditors? That would be a good starting point to get more specific advice/tips on how to work with them.
07-09-2010 01:14 PM
I was required to do the same thing when I was obtaining a mortgage and I closed on 5/28/2010. If it is sallie mae you can go on there website and do an online deferment. There are different reasons you can select. Once approve on the same website you can prinnt the letter that shows it is defer and it will also show the date. Hope this helps.
07-09-2010 01:18 PM
Also, are they federal loans or private. That makes some difference.
In the end, almost all deferrments are conditonal upon stuff like staying in school, financial condition, etc and alot of lenders (not all, but alot of them) will not accept the deferrment letter unless it has no listed conditions. For example, most in school deferrment letters state that loans become due 6 months after graduation or dropping out of school so this doesn't work alot of times. Also, with it getting harder to get jobs out of school, alot of lenders are less likely to not count student loans because the whole idea that a college student's income will jump immediately upon graduation and will cover the loan payments is kind of out the window right now. Then the final hurdle is that most deferrments that are not in school deferrments are only good for 12 months from the date you request them. Of course this takes a few days and the lender is going to want the letter a few days before close so timing it to be good for a full 12 months post closing is pretty tricky.
It is all lender specific though. There are still lenders that are not counting SL's into student loans and there are those that no matter the circumstances are going to count them. Understand, that like everything else, your file has to balance out. If you have an otherwise strong file but have some student loans in deferrment then they may be more willing to not count them or allow the higher DTI with the loans in. If you have a 620 FICo, minimum down, no reserves, recent lates,and deferred loans (or some combination of these factors), then the equation gets harder. The UW's job is to weight the good and the bad. That is why you can slip one negative aspect through in most cases, but alot of people with one negative aspect fall into the others as well.
As far as how to get deferrments, you just call the lender (or lenders) and request them. Understand that you have to prove a reason for them. Economic hardship may require proof and/or documentation and may not be automatic (depends on the lender). Also, even if the LO guarantees it, there is always a chance that the UW will come back requiring loans counted or that doc provided are not enough (especially if the proof letters have conditions in them)
Anyways, good lick with it.
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