How does NFCU or Veterans United consider IBRs?

[Onlyoneme0205]

Hello everyone. I will be applying for a VA home loan in a few months. My student loan amounts are close to $100,000 and I’m seeing different things online at how most lenders will not consider the IBR but instead use a 1% - 2% calculation. I was approved for an IBR at $0/ month and wasn’t sure if I would even be approved. I have no other debt outside of 1 CC I’m still paying on (the rest of my 5 CCs are paid off). I have zero collections. My income is 43k a year with one dependent (8 years old). Does anyone know how Navy Federal or Veterans United take IBRs into consideration? If there’s other lenders I should look at, please let me know.

[stinastina]

I'm not clear on VHA - it seems like 50% of the 1% payment is counted against your dti if you have a 0 IBR.

You can talk to your loan servicer about coming out of 0 IBR for a nominal payment amount - like as an example - $15 per month. USDA Direct uses the 0 IBR as long as it's reported on your credit report.

There may be the option of forbearance or deferment but it has to be for at least 12 months - ask your servicer if you are eligible.

[VALoanMaster]

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@Onlyoneme0205 wrote:
Hello everyone. I will be applying for a VA home loan in a few months. My student loan amounts are close to $100,000 and I’m seeing different things online at how most lenders will not consider the IBR but instead use a 1% - 2% calculation. I was approved for an IBR at $0/ month and wasn’t sure if I would even be approved. I have no other debt outside of 1 CC I’m still paying on (the rest of my 5 CCs are paid off). I have zero collections. My income is 43k a year with one dependent (8 years old). Does anyone know how Navy Federal or Veterans United take IBRs into consideration? If there’s other lenders I should look at, please let me know.

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Hi Onlyoneme0205,

You need a lender that follows VA guidelines without adding their own on top.

Here are the actual VA guidelines.

3. How to Calculate a Student Loan Monthly Payment.
a. If the Veteran or other borrower provides written evidence that the student loan debt will be
deferred at least 12 months beyond the date of closing, a monthly payment does not need to be
considered.
b. If a student loan is in repayment or scheduled to begin within 12 months from the date of
VA loan closing, the lender must consider the anticipated monthly obligation in the loan
analysis and utilize the payment established in paragraph (1) or (2) below.

Calculate each loan at a rate of 5 percent of the outstanding balance divided by 12 months (example: $25,000
student loan balance x 5% = $1,250 divided by 12 months = $104.17 per month is the monthly
payment for debt ratio purposes).

(1) The lender must use the payment(s) reported on the credit report for each student loan(s) if
the reported payment is greater than the threshold payment calculation above.

(2) If the payment reported on the credit report is less than the threshold payment calculation
above, the loan file must contain a statement from the student loan servicer that reflects the
actual loan terms and payment information for each student loan(s). The statement(s) must be
dated within 60 days of VA loan closing and maybe an electronic copy from the student loan
servicer’s website or a printed statement provided by the student loan servicer. It is the
lender’s discretion as to whether the credit report should be supplemented with this information.