The more I read about these the more questions I have and niches I'm trying to exploit. Here's my question.
I'm currently eligible for a VA home loan. I have about $77k in Federal student loans.
Is it possible to have a monthly payment on the credit repor show $50 for student loan payments and that taken into consideration for underwriting purposes instead of the full standard repayment plan of say $900?
My goal here is to lower my DTI and what reports to the mortgage company on my credit report. So loan servicer grants a monthly payment of $50 a month and mortgage servicer uses that in DTI calc?
Re: Is This Possible? Student Loan IBR and Mortgage
I don't know how it works for other student loan servicers, but I do know that when you go from a higher paying plan to an IBR plan, the lower payment is now shows up as your monthly payment. As it changes, so does the monthly payment amount reported. Also, I found that if you have a reduced income any month before your annual recalculation, submit your paperwork early. They will recalculate it even lower and that amount will be good for another year.
I alway encourage people to use the IBR plans (request the lowest plan on the application) because it has a loan forgiveness too.