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USDA approval and student loan repayment and DTI

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Ktiz54
Established Member

USDA approval and student loan repayment and DTI

Hi,

I tried searching for this answer but only saw one mention of it so wasn't sure.  My student loans (parent plus for my 2 college aged kids) are in the graduated repayment plan and I read once that USDA will calculate them for your DTI using the highest payment that you will eventually be making.  This will kill my DTI as it is a $179.00 difference.  If I go ahead and change to the standard repayment it will only raise it $50 so I think I should do that.  Should I wait until they tell me to do it or go ahead before applying?  Would it be a hard inquiry on my credit or be considered a new account if I only change the repayment method?  They were consolidated a couple of years ago through Fed Loan Servicing.

 

Thanks for any help!

Message 1 of 3
2 REPLIES 2
Muschock
New Contributor

Re: USDA approval and student loan repayment and DTI

I recently closed with a USDA mortgage. I have loans on IBR. I had to prove what the payment would be for a yr out. If your payment wont change and you can prove that you shouldnt have an issue.
Message 2 of 3
Ktiz54
Established Member

Re: USDA approval and student loan repayment and DTI

Oh good, if they only look one year out I should be fine the way they are.

Thanks for the info!

Message 3 of 3
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