@Anonymous wrote:
I've seen a few of these questions on these forums, but no one ever comes back with how it all ended up!
DH is set to graduate Optometry school in 9weeks, in 10weeks he will start a salaried position in a small, rural town. We have been told by the mortgage company that between our credit scores and our contract for his new job that we meet all guidelines for USDA. We've provided everything they've asked for, but everything came to a standstill yesterday when they asked for what our student loan repayment will be.
We are a family of 6 and with our income and large family size we qualify for the income based repayment. However....
Fedloans can't give us an estimate until we graduate and have a real job, but we won't have that for 10 more weeks, in order to work we need to be able to live there....Gah. You see where this is going. We do not want the underwriters to use the 1%....we had to take out alot of money to put DH through Optometry school while caring for 4 kids under 8!
So, how do I do one of the following:
1.Get Fedloans to write a letter explaining that our loans can't be calculated, but based on their calculator on their website our payment will hypothetically be $X.xx, (but not an exact Number like the UW want.
2. Get our UW to accept our loan calculator printout and our deferment until Nov.
Anyone with anyinformation would be awesome! We have to get back to everyone on Monday with the information they want. And each day we watch the house that we want sit longer on the market. We're praying hourly that no one else snatches it up before we can get our ducks in a row!
Well the truth is you are stuck in a catch 22.
Fed Loans will not issue a letter explaining that they cant be calculated. Well lets just say out of the 100's of people I know who have tried were not successful.
UW will also not accept a hyperthetical, from a computer generated response.
Now the next issue you may run across is some Lenders will not accept an IBR payment. They will still calculate according to the 1% repayment option or whatever the percentage is.
First thing you have to do is calculate with the 1% repayment option. Would you still be qualified with your DTI. If you would still qualify then it really is a mute issue as in you still qualify and would be approved.
If your DTI is to high and you would have to purchase something of a lesser price, then this is where you may have issues because of your family size and space needed.
Then you may have to contemplate possibly using a different type of loan that allows a higher DTI, or negotiating with the seller seeing if they will come down in the price, or just looking for a lesser price house you can afford.
You also can look into NACA which is an excellent program but is a slow process.
On a side note... Since the process is just with the UW from the Lender and you are running into hiccups, you still have to be submitted to USDA after UW approves which also takes time and not a quick turn around (some wait months for USDA, could be because of funding, or just very busy with files).
The process is not a 1, 2, 3 you are approved as I am sure you know, but even if it takes you to sacrifice by commuting the distance to work there, or even possibly having your husband rent a small efficiency or something (so dont have to commute every day) until the process is completed, may be worth it to you.
If this is not an option for you, then you can look into other type of loans that have higher DTI limits or possibly different requirements as far as IBR is considered.
Good Luck
May all your dreams and wishes become a reality!
