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High student loan debt and low income....Is a mortgage possible???

work_n_progress2
Frequent Contributor

Re: High student loan debt and low income....Is a mortgage possible???

Yes, multiple mortgage pulls createba small drop in points but not major. You'll most likely have to write a letter of explanation during the underwriting process but it should not break the future deal.

Good luck!
Message 11 of 16
Grace78
New Visitor

Re: High student loan debt and low income....Is a mortgage possible???

So how did you get preapproval with your student loan debt? Who did you go through? I too have students loans I am concerned will interfere will the loan process. Thanks!
Message 12 of 16
pecanpie
New Member

Re: High student loan debt and low income....Is a mortgage possible???


@Grace78 wrote:
So how did you get preapproval with your student loan debt? Who did you go through? I too have students loans I am concerned will interfere will the loan process. Thanks!

Hi!  I should update this thread.  Yes I was able to obtain a loan!  My LO said that Fannie Mae had updated how they calculate student loan debt. I am currently on an IBR due to my low salary.  I was able to use my monthly IBR payment to be caluclated into my DTI. So if you can qualify for a conventional loan you should ask about it!  Good luck!!!

Message 13 of 16
C_Mortgage_Banker
New Member

Re: High student loan debt and low income....Is a mortgage possible???

Some Lenders have access to loan programs that will use the actual payment to qualify you while other lenders will be required to use 1%. I would reach out to several different lenders to see what their guidelines are. My company can use your actual reported payment for a conventional loan.

Message 14 of 16
pecanpie
New Member

Re: High student loan debt and low income....Is a mortgage possible???

I'm sorry, I didn't actually answer your question. Yes, lenders have access to different programs. Shop around. I happened to get linked to my lender via an inquiry about a down payment assistance program.
Message 15 of 16
StartingOver10
Moderator Emerita

Re: High student loan debt and low income....Is a mortgage possible???


@pecanpie wrote:

@Grace78 wrote:
So how did you get preapproval with your student loan debt? Who did you go through? I too have students loans I am concerned will interfere will the loan process. Thanks!

Hi!  I should update this thread.  Yes I was able to obtain a loan!  My LO said that Fannie Mae had updated how they calculate student loan debt. I am currently on an IBR due to my low salary.  I was able to use my monthly IBR payment to be caluclated into my DTI. So if you can qualify for a conventional loan you should ask about it!  Good luck!!!


Yes, this is true ^^^ Fannie Mae recently (2017) changed their guidelines to allow the IBR payments as long as that is what shows on your credit report.  FHA requires the 1% calculation still.  For those with high student loan debt, it pays for you to get on the IBR payment plan before you make application for a mortgage.  Congrats pecanpie!

Message 16 of 16
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