Freddie Mac or bust?

[asgor]

I want to purchase a home this summer in San Antonio, TX. I am nervous because of the student loan change of the 1% rule.  My middle score is 702 and I make 5100 a month ( I have signed my contract already for the next school year taking my salary to 5800 a month).  I have 100, 000 in student loan debt but the loans are consolidated and I pay 180 a month.  I have 3 credit cards which totals to 75.00 a month payment but I only have a 142.00 balance out the 6900 available credit. and a furniture payment of 140.00. I have no car payments . I have had no late payments in 3 years. I suggest Freddie  Mac because upon my  research they haven't switched over to the 1% rule for student loans..  I guess I am asking am I in good shape to apply for a home loan with Freddie Mac? I don't want an  extravagent home around 130,000. I  am currently paying 1250 for a very mediocre apartment in a pretty high crime neighborhood. 

[DallasLoanGuy]

is $180 listed on the credit report?

yeah, freddie is still the place i can go with them. and that score is fine.

[DallasLoanGuy]

we would need a letter from them showing the payment as well

this is usually pretty easy and matches what is reported

[Anonymous]

@DallasLoanGuy - for the student loan payments, which ones are acceptable for conventional - standard, extended, extended fixed, graduated, IBR, PAYE, or REPAYE?

I see a lot of comments about making sure you are on a plan that amortizes the loan and making sure that the payment amount is reported on the credit reports but I havent seen anything that indicates which repayment plans are the ones to use to make sure you dont end up having to do the 1%. I know it isnt cut and dry but just seeking some clarity.

Thanks for all you do for us on these boards.

HFM

[DallasLoanGuy]

---

@Anonymous wrote:

@DallasLoanGuy - for the student loan payments, which ones are acceptable
for conventional - standard, extended, extended fixed, graduated, IBR, PAYE, or REPAYE?  <= i dont think it matters. just has to have a reported pmt... or pmt letter 

I see a lot of comments about making sure you are on a plan that amortizes<= fannie mae guideline. freddie mac has has the favorable guidelines we are discussing. BOTH are conventional. same rates the loan and making sure that the payment amount is reported on the credit reports but I havent seen anything that indicates which repayment plans are the ones to use to make sure you dont end up having to do the 1%. I know it isnt cut and dry but just seeking some clarity.

Thanks for all you do for us on these boards.

HFM

---

make sense?

[Anonymous]

WHAT!!!! so what is the difference between freddie and fannie then because if that is the case I could get a lower SL payment and open up my DTI some more.

[Anonymous]

@DallasLoanGuy I have been researching the Freddie Mac guidelines and saw this >> "borrower's annual income must be equal to or less than the area median income" is this true for all Freddie Mac loans?

HFM

[asgor]

Yes it is listed as teh updated payment

[VALoanMaster]

---

@Anonymous wrote:

@DallasLoanGuy I have been researching the Freddie Mac guidelines and saw this >> "borrower's annual income must be equal to or less than the area median income" is this true for all Freddie Mac loans?

HFM

---

Hi HFM,

The income limit only applies to the Freddie Mac Home Possible program.

[ShanetheMortgageMan]

---

@Anonymous wrote:

WHAT!!!! so what is the difference between freddie and fannie then because if that is the case I could get a lower SL payment and open up my DTI some more.

---

Not a whole lot other than some minor differences in guidelines, including how student loans are treated.  As the years have gone by, Fannie and Freddie guidelines have become more similar to one another (for example Fannie Mae didn't use to allow a non-occupant co-borrower's income to help qualify, whereas Freddie did, but now Fannie Mae allows it too... and Freddie Mac used to require a 2-year landlord history to use rental income, Fannie Mae didn't, and now Freddie Mac doesn't either).