topic Re: Student loan in Mortgage Loans

Student loan

SSH0126 — Wed, 18 Oct 2017 11:00:52 GMT

Owe a large amount on student loans(100k). Looking to buy in 12 months. If I do a repayment plan would the payment amount be used if it’s lower than using the 1% in monthly dti?

1 percent of the outstanding balance on the loan; or
the monthly payment reported on the Borrower’s credit report; or
the actual documented payment, provided the payment will fully amortize the loan over its term

Re: Student loan

Anonymous — Wed, 18 Oct 2017 13:19:30 GMT

It depends on the type of loan you will be applying for. Conventional loans are able to accept the IBR payment. However, FHA guidelines state that the 1% payment calculation must be used.

Re: Student loan

SSH0126 — Wed, 18 Oct 2017 13:20:16 GMT

Wanting to use Va

Re: Student loan

VALoanMaster — Wed, 18 Oct 2017 14:47:55 GMT

@SSH0126 wrote:
Wanting to use Va

Hi SSH0126,

The VA guideliens are a little different on student loans.

Here are the VA guidelines.

b. If a Student Loan is in repayment or scheduled to begin within 12 months from the date of a VA Loan closing, the lender must consider the anticipated monthly obligation in theVA Loan analysis and utilize the payment established in paragraph (1) or (2) below. Calculate each loan at a rate of 5 percent of the outstanding balance divided by 12 months (example: $25,000 student loan balance x 5% = $1,250 divided by 12 months = $104.17 per month is the monthly payment for debt ratio purposes).

(1) The lender must use the payment(s) reported on the credit report for each Student Loan(s) if the reported payment is greater than the threshold payment calculation above.

(2) If the payment reported on the credit report is less than the threshold payment calculation above, the loan file must contain a statement from the Student Loan servicer that reflects the actual loan terms and payment information for each Student Loan(s). The statement(s) must be dated within 60 days of VA Loan closing and maybe an electronic copy from the Student Loan servicer’s website or a printed statement provided by the Student Loan servicer. It is the lender’s discretion as to whether the credit report should be supplemented with this information.

So if you're on a Income Based Repayment program, we can use that payment as long as we have a letter from your sevicer showing the payment.

Re: Student loan

SSH0126 — Wed, 18 Oct 2017 15:44:40 GMT

Hi, thanks for replying. We have actually talked to you here recently-via phone. We live in a community property state and I have 100k in SL-horrible I know. So trying to figure out what would be the best route to take. ie which repayment plan, defferment etc etc.

Re: Student loan

VALoanMaster — Wed, 18 Oct 2017 17:07:05 GMT

@SSH0126 wrote:
Hi, thanks for replying. We have actually talked to you here recently-via phone. We live in a community property state and I have 100k in SL-horrible I know. So trying to figure out what would be the best route to take. ie which repayment plan, defferment etc etc.

Oh, ok. Well if you can get them deferred for at least 12 months from closing we don't have to hit you with a payment or if you can get a zero or low monthly payment through an IBR program we can use that payment.

Re: Student loan

SSH0126 — Thu, 19 Oct 2017 18:36:06 GMT

VA Loan master,

What is the best method of combing them for repayment if I have multiple lenders like mohela and Navient etc