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FHA and Student Loans

Valued Member

FHA and Student Loans

I read somewhere that the FHA programs require 1% of the total student loan amount to be added into your DTI ratio if they are deferred, in forbearance or on an income based payment plan. If the loan in on an amortized payment plan they take the amount of the payment? Is this true? Our broker is telling me that FHA doesn't care what type of payment plan it is in, it will factor the 1%. I assume this is not a state specific thing since it's a federal program? Any help would be greatly appreciated. I am in Utah, if that makes a difference.


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Established Contributor

Re: FHA and Student Loans


@huzchris wrote:
I read somewhere that the FHA programs require 1% of the total student loan amount to be added into your DTI ratio if they are deferred, in forbearance or on an income based payment plan. If the loan in on an amortized payment plan they take the amount of the payment? Is this true? Our broker is telling me that FHA doesn't care what type of payment plan it is in, it will factor the 1%. I assume this is not a state specific thing since it's a federal program? Any help would be greatly appreciated. I am in Utah, if that makes a difference.

Broker is incorrect. If the loan is on an amortized payment plan, provide docs and we should be able to use the lower amortized amount

Mortgage Loan Officer in Greater Chicago Area plus 49 states
Message 2 of 6
Established Contributor

Re: FHA and Student Loans

^ As long as the payment fully amortizes the loan you'll be fine.

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Licensed NC Mortgage Loan Originator
Message 3 of 6
Valued Member

Re: FHA and Student Loans

How will you know the payment fully amortizes?


Starting Score: 498
Current Score: EQ 676 TU 692 EX 675
Goal Score: 800 across the board


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Message 4 of 6
Established Contributor

Re: FHA and Student Loans

Call your Student Loan Servicer and ask them and then ask them where you can find this info on their website or to send you a letter. I suspect you signed modification papers that spell out the terms of your pmts. Expect to need to prove this in writing.
Message 5 of 6
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Frequent Contributor

Re: FHA and Student Loans

I concur, as long as you call your student loan servicer and have them provide a payment schedule with a payment amount and a payoff date, you should be good to go. Make sure you request the longest term available that if fully amortized.

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo and Portfolio Loan Products. Licensed in AL, AZ, CA, FL, GA, IL, IA, IN, KY, LA, MI, MO, NC, NE, NV, NJ, OH, OK, OR, PA, SC, TN, TX, VA and WI.
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