topic Re: Student Loans and DTI in Mortgage Loans

Student Loans and DTI

Anonymous — Thu, 13 Mar 2008 22:32:01 GMT

I have a question about figuring DTI with student loans. All of my students loans (20K) are currently deferred because I am still in school. My FICO scores are 604TU, 579 EQ and 583 EX. I will pay off my car in four months and my utilization is up around 50%. I should have my utilization down to 5-10% by the time I hope to buy. I want to buy a condo this summer (August), but I am not sure if I will qualify because of the student loans. I will be in school at least three more years, and the deferment is showing going through 2015 on my credit report. I make about $32,000 per year and have been with my employer for eight years. I am not trying to get anything extravagant (I hope to stay under 70K). Would I qualify for FHA? My credit is very good in the last two years. No lates at all. I do have one CFL with CitiFinancial that has a balance of about 3K. (I pay $124 per month)

Thanks.

Message Edited by jillian2778 on 03-13-2008 03:32 PM

Re: Student Loans and DTI

Anonymous — Fri, 14 Mar 2008 18:22:03 GMT

I don't know about the FHA angle, but I do know that when I refi'd a few years back, I was told that my student loans would count against my DTI because my deferment ended in less than a year. In other words, if my student loans had been deferred for more than 12 months, they would not have counted.

Re: Student Loans and DTI

Anonymous — Fri, 14 Mar 2008 19:15:10 GMT

I know this because I have over 40k in student loans and just applied for a new home loan. I too have loans in deferrment. Your lender will still count this as a "monthly obligation" even if it is in deferrment. Nothing wrong with the FHA loan, my current mortgage is FHA.

Re: Student Loans and DTI

Anonymous — Fri, 25 Apr 2008 22:17:24 GMT

When got our first FHA mortgage about 5 years ago, I was in grad school and all my loans were in deferrment. I seem to remember them not counting against our DTI (perhaps because deferrment ended in more than 12 mos time??). Maybe if you are worried about it, stay in school at least PT and defer your loans. Also, you can consolodate your federal loans when you graduate at a lower, fixed interest rate I think and even get on a different, extended payment plan that lowers your monthly payment. If you have any private loans, you can do an extended payment option as well to lower your payments.

Re: Student Loans and DTI

DallasLoanGuy — Fri, 25 Apr 2008 22:37:44 GMT

Proof that they are deferred for 12+ months and they are not included in DTI for an FHA loan.

Conventional loan WOULD INCLUDE them regardless.