topic Re: fha loan with student loan lates in Mortgage Loans

fha loan with student loan lates

Anonymous — Tue, 04 Aug 2009 02:49:01 GMT

my fiance and i have 89000 a year income 600 a month debt and i have 2 lates on a student loan 18 months ago it is in forebearance now, but i included that in my debt (100 a month) lowest midscore for the 2 of us is 625. i know they want student loans on time for sure. we also have been living with my grandmother taking care of her for the last 10 months so no rent history since then (1755 a month always on time) any advice? we have about 5000 saved and 10000 gift will this be a no deal?...were looking for 200-250k

thanks you so much

Re: fha loan with student loan lates

Anonymous — Tue, 04 Aug 2009 04:06:37 GMT

i guess the point i wanted answered was i heard student loans lates were a deal breaker with fha? is this true?

Re: fha loan with student loan lates

Anonymous — Tue, 04 Aug 2009 15:14:32 GMT

Older student loan lates aren't a deal breaker but the fact that you're in forbearance might be a problem. Was it a financial hardship forbearance?

Re: fha loan with student loan lates

Anonymous — Tue, 04 Aug 2009 16:48:30 GMT

it was for finacial hardship officially, but the person actually did it because my automatic monthly payment didnt take so they offered to put it in forebearence....so this will be a deal breaker?ouch its only 100 a month

Re: fha loan with student loan lates

Anonymous — Tue, 04 Aug 2009 17:26:59 GMT

Not necessarily a deal breaker. I'm not an expert on the subject but i don't think it's necessarily a deal breaker. It just looks "worse" obviously than a file without an economic hardship. We were approved and my husband has a forbearance but he didn't have any late payments prior to the forbearance.

Do you have a lender in mind? You could call and ask about their policy, it might vary by lender. Just make sure you tell them NOT to pull your credit report yet.

Maybe someone else here can chime in too.

I found this site too but i don't know how accurate the info is...

http://www.ehow.com/facts_5033407_fha-requirements-regarding-student-loans.html

Good luck!

Re: fha loan with student loan lates

ShanetheMortgageMan — Tue, 04 Aug 2009 18:49:07 GMT

How are the payment reporting to credit now? Is it just a late payment 18 months ago... and ever since then, all reports as paid on time, but also has a note of being in forebearance? If that is the case, then since the lates were well over 12 months ago, as long as you didn't ever default on them/have a CAIVRS claim against you, then the student loan lates shouldn't be holding you back from approval.

Re: fha loan with student loan lates

Anonymous — Tue, 04 Aug 2009 19:20:31 GMT

ahhh well i did default 5 years ago then consolodated them with direct loan company they were bofa before that. wow thanks for all the help people!!!

Re: fha loan with student loan lates

Anonymous — Tue, 04 Aug 2009 22:00:26 GMT

default on a student loan is ok if its been consolodated 5/4 years ago right its been fine since then(expet 2 lates 18 months ago and forebearance?!?

Re: fha loan with student loan lates

Anonymous — Tue, 04 Aug 2009 22:13:46 GMT

My husband and i both put our student loans into forbearance for 6 months to pay off our credit cards. (Ivy league schools for grad and undergrad--about 81,000 in principle left; consolidated in 2003.) While they were in forbearance (1 month left to go), we started the house looking thing. Then we unexpectedly found one we liked, put in an offer,etc, etc, and now we're closing thursday.

When they ran our credit reports, the loans said deferment--not forbearance. It was no problem. I don't know if there are any absolute rules for late payments. We didn't have any lates on our credit (except for one that happened 5 years ago.) But I think they are really looking for patterns of behavior, not isolated events. If you can explain why something happened, it will be ok.

No one is (or should be) perfect!

Re: fha loan with student loan lates

DallasLoanGuy — Tue, 04 Aug 2009 22:43:13 GMT

likely not a problem.

if approved thru automated underwriting then even less of a problem.