Lenders that will use actual student loan payment for DTI

[dollarsnsense]

Does anyone know of any lenders that are following the newer student loan guidelines that state they can use the actual monthly payment when in a IBR plan for DTI? I have high student loan debt and have been told by 2 different lenders that they still follow the 1% of student loan balance rule to factor my student loan payment for DTI. This puts me well over the limit, but with my actual payment amount I would qualify. 

They explained to me this is because IBR has to be reapplied for each year and there is a risk that one might not qualify or have a increase in payment amount if there happened to be a jump in salary. I am a teacher... so no jumps in salary for me....😆

[dragontears]

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@dollarsnsense wrote:

Does anyone know of any lenders that are following the newer student loan guidelines that state they can use the actual monthly payment when in a IBR plan for DTI? I have high student loan debt and have been told by 2 different lenders that they still follow the 1% of student loan balance rule to factor my student loan payment for DTI. This puts me well over the limit, but with my actual payment amount I would qualify. 

They explained to me this is because IBR has to be reapplied for each year and there is a risk that one might not qualify or have a increase in payment amount if there happened to be a jump in salary. I am a teacher... so no jumps in salary for me....😆

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Which loan type are you looking at? FHA, VA, USDA, Fannie Mae or Freddie Mac? Each program has different rules on IBR, deferrment and % to use when the payment is listed as $0 on your reports. 

[dollarsnsense]

FHA. I am a first-time home buyer. 

[dragontears]

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@dollarsnsense wrote:

FHA. I am a first-time home buyer. 

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What is the current payment listed on your credit report for the student loans? 

[dollarsnsense]

$274

[nelslt]

I just closed on my home on 2/24 with an FHA loan.  They used the actual amount reporting from the credit bureaus.  I am in an IBR repayment plan also.

[dollarsnsense]

Who do you have your mortgage through?

[SouthernCredit]

My lender only ever used 1% if the loan was in deferment or forebearance. If the loan was active they used the actual payment. 

[dollarsnsense]

Who is your lender?

[SouthernCredit]

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@dollarsnsense wrote:

Who is your lender?

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I've used Ameris Bank for my last 3, and that's been the case each time. First was during my graduation deferment (they used 1%, but since I was getting ready to come out right after closing and had paperwork of what my payment was going to be, they got that through underwriting). Second I was in regular repayment and they used actual payment. Third was during these covid deferrals and they used 1%.