FHA changing guidelines on deferred student loans - 6/15/15

[Anonymous]

My wife and I are quickly trying to obtain an FHA mortgage but have to wait until August 13th when our chapter 7 bk discharge hits the 2-year anniversary date.  Given my current student loan deferments, we're holding out hope that HUD pushes back the September 15th date back once again.  Either way, a couple of lenders have told us that we should be able to receive an FHA pre-approval and then get under contract on a home by the first week of September at the latest!

[CreditGuy03]

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@Anonymous wrote:

My wife and I are quickly trying to obtain an FHA mortgage but have to wait until August 13th when our chapter 7 bk discharge hits the 2-year anniversary date.  Given my current student loan deferments, we're holding out hope that HUD pushes back the September 15th date back once again.  Either way, a couple of lenders have told us that we should be able to receive an FHA pre-approval and then get under contract on a home by the first week of September at the latest!

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We are in the same situation. Our short sale 3 year anniversary is August 11th. Hopefully we can get in before then too. 

[Anonymous]

Hello,

I have spoken to 2 different loan officers and they are unaware of these changes to the current policy.  I too, hope FHA will move the date back.  I'm in the processing of removing $300 of debt from my monthly expenses and I am almost out of the tunnel.  Daylight for me wouldn't be until mid-October. 

Wishing everyone blessings.  Please report when you close! 

[Anonymous]

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@Anonymous wrote:

My wife and I are quickly trying to obtain an FHA mortgage but have to wait until August 13th when our chapter 7 bk discharge hits the 2-year anniversary date.  Given my current student loan deferments, we're holding out hope that HUD pushes back the September 15th date back once again.  Either way, a couple of lenders have told us that we should be able to receive an FHA pre-approval and then get under contract on a home by the first week of September at the latest!

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Yup! All you need is an FHA case number (be in contract) before the September guideline change. Best of luck!

[CreditGuy03]

So how exactly does FHA treat student loans now currently before these changes are in effect?

[Anonymous]

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@CreditGuy03 wrote:

So how exactly does FHA treat student loans now currently before these changes are in effect?

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FHA loans before September 14, 2015:

-Will use actual documented loan payment

-If deferred for less than 12 months at closing, will use 5% of balance owed if future payment can not be proved with documentation

-If deferred for more than 12 months at closing, debt is not counted

FHA loans on or after September 14, 2015:

-Will use actual documented loan payment

-If deferred (regardless of how long), will use future payment amount

-If loan is in deferment and future payment cannot be determined, will use 2% of the balanced owed

[live-n-learn]

It's  true some lenders seem to not be aware of the current changes. I mentioned this change back in March to my lender when I received  my pre approval  letter, even sent him a link to where it was explained and he said he was unaware  of any changes, then in June when I met with him again he proceeded to tell me about the new FHA requirements for deffered student loans. He totally  forgot I brought it to his attention  first and have the email to prove it!  Anyway, you definitely  have to continue to ask questions so you won't be blind sided later. 

I guess I would've  expected that the lender would know more about it than me.  

[CreditGuy03]

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@Anonymous wrote:

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@CreditGuy03 wrote:

So how exactly does FHA treat student loans now currently before these changes are in effect?

---

FHA loans before September 14, 2015:

-Will use actual documented loan payment

-If deferred for less than 12 months at closing, will use 5% of balance owed if future payment can not be proved with documentation

-If deferred for more than 12 months at closing, debt is not counted

FHA loans on or after September 14, 2015:

-Will use actual documented loan payment

-If deferred (regardless of how long), will use future payment amount

-If loan is in deferment and future payment cannot be determined, will use 2% of the balanced owed

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So if you are on IBR right now they would just the IBR payment amount? 

Why is it that USDA needs to use the full payment terms (non graduated, non interest only, non ibr etc) They want the full blown payment that no one really uses since these other options exist

[Anonymous]

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@CreditGuy03 wrote:

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@Anonymous wrote:

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@CreditGuy03 wrote:

So how exactly does FHA treat student loans now currently before these changes are in effect?

---

FHA loans before September 14, 2015:

-Will use actual documented loan payment

-If deferred for less than 12 months at closing, will use 5% of balance owed if future payment can not be proved with documentation

-If deferred for more than 12 months at closing, debt is not counted

FHA loans on or after September 14, 2015:

-Will use actual documented loan payment

-If deferred (regardless of how long), will use future payment amount

-If loan is in deferment and future payment cannot be determined, will use 2% of the balanced owed

---

So if you are on IBR right now they would just the IBR payment amount? 

Why is it that USDA needs to use the full payment terms (non graduated, non interest only, non ibr etc) They want the full blown payment that no one really uses since these other options exist

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Now to throw a monkey wrench in: what about the loans of the non-signing spouse? I'm pretty sure they have to be included also! Man, you'd think college grads haven't suffered enough with student loan debt.

[Anonymous]

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@Anonymous wrote:

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@CreditGuy03 wrote:

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@Anonymous wrote:

---

@CreditGuy03 wrote:

So how exactly does FHA treat student loans now currently before these changes are in effect?

---

FHA loans before September 14, 2015:

-Will use actual documented loan payment

-If deferred for less than 12 months at closing, will use 5% of balance owed if future payment can not be proved with documentation

-If deferred for more than 12 months at closing, debt is not counted

FHA loans on or after September 14, 2015:

-Will use actual documented loan payment

-If deferred (regardless of how long), will use future payment amount

-If loan is in deferment and future payment cannot be determined, will use 2% of the balanced owed

---

So if you are on IBR right now they would just the IBR payment amount? 

Why is it that USDA needs to use the full payment terms (non graduated, non interest only, non ibr etc) They want the full blown payment that no one really uses since these other options exist

---

Now to throw a monkey wrench in: what about the loans of the non-signing spouse? I'm pretty sure they have to be included also! Man, you'd think college grads haven't suffered enough with student loan debt.

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@Anonymous wrote:

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@CreditGuy03 wrote:

---

@Anonymous wrote:

---

@CreditGuy03 wrote:

So how exactly does FHA treat student loans now currently before these changes are in effect?

---

FHA loans before September 14, 2015:

-Will use actual documented loan payment

-If deferred for less than 12 months at closing, will use 5% of balance owed if future payment can not be proved with documentation

-If deferred for more than 12 months at closing, debt is not counted

FHA loans on or after September 14, 2015:

-Will use actual documented loan payment

-If deferred (regardless of how long), will use future payment amount

-If loan is in deferment and future payment cannot be determined, will use 2% of the balanced owed

---

So if you are on IBR right now they would just the IBR payment amount? 

Why is it that USDA needs to use the full payment terms (non graduated, non interest only, non ibr etc) They want the full blown payment that no one really uses since these other options exist

---

Now to throw a monkey wrench in: what about the loans of the non-signing spouse? I'm pretty sure they have to be included also! Man, you'd think college grads haven't suffered enough with student loan debt.

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In a community property state, yes.