FHA is changing the way they calculate payments in the DTI for student loans

[ShanetheMortgageMan]

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@RESSECUP wrote:

this is great news, but with the current deferments (care act) I am showing at zero, would if I can get documents showing what my IBR payments are would they still use that or go by the zero amount? 

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They'd use .5% of the balance since the payment on credit reports as $0.   

Fannie Mae allows using the IBR payment prior to forbearance, even if the loan is still in forbearance (this is a temporary guideline that may go away).  FHA doesn't go by that guideline though.

[ShanetheMortgageMan]

FHA officially amended the 4000.1 Handbook (where official FHA guidelines are published), but made a slight tweak that should further help borrowers.  That tweak says if student loan payments were suspended (put into forbearance) due to COVID-19 emergency relief, then mortgage lenders may use the documented payment amount prior to when payments were suspended (vs. having to use .5% of the balance as the payment).

[Anonymous]

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@ShanetheMortgageMan wrote:

FHA officially amended the 4000.1 Handbook (where official FHA guidelines are published), but made a slight tweak that should further help borrowers.  That tweak says if student loan payments were suspended (put into forbearance) due to COVID-19 emergency relief, then mortgage lenders may use the documented payment amount prior to when payments were suspended (vs. having to use .5% of the balance as the payment).

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Does anyone now if you are on IBR, does it report that amount across all student loans? For example, on my credit, there are 18 student loans from my doctorate program. If I get my IBR to lets say $100/month, will that report on one of those loans or split between all 18 loans? This makes a difference as to whether or not I can get a FHA loan or not