topic Re: Deferred loans and DTI? in Rebuilding Your Credit

Deferred loans and DTI?

Anonymous — Mon, 15 Aug 2016 16:42:22 GMT

I am still in the saving process for my down payment and weighing my options on if I will be doing an FHA loan or just go about it the "regular" way whatver that means but my loans are deferred until spring of 2018 and wanted to know if deferred loans are apart of the DTI Ratio or not? I just read that FHA lenders have to include 20% of deferred loans but has anyone had any experience with student loans being apart of they're DTI ration or if they were not??

20% of my loans is around 18K, should I pay that amount off while saving for like a year and than go for the mortgage?? So confused with this deferred loans business

Re: Deferred loans and DTI?

Anonymous — Mon, 15 Aug 2016 16:45:02 GMT

There is a lot of information about this in the mortgage loan section. I got a lot of useful information regarding Student loans and mortgages.

Re: Deferred loans and DTI?

RobertEG — Mon, 15 Aug 2016 18:17:54 GMT

The following documents should answer all your questions.

HUD issued a policy memorandum titled "Mortgagee Letter 216-08" dated April 13, 2016, which details the current FHA requirments for debt to income consideration of both deferred and non-deferred student loans.

Those revised guidelines have also been incorporated into and can be found in the HUD Single Family Housing Handbook 4000.1, as revised on June 30, 2016.

It includes a new section 4000.1,II.A.4.b.iv dealing specifically with all student loans.

The new section was added specifically to separate student from other types of installment loans.