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Mortgage Loans, and Student Loans

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Anonymous
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Mortgage Loans, and Student Loans

I am in the process of trying to get a mortgage loan. My credit score is currently Eq - 668   Trans - 689 and Exp - 662 (this is a old score) from Myfico. I am in the process of getting pre-approved, but the mortgage company tells me that I need to show how much my student loans are a month. I am also paying my car off this month.

 

My yearly income is 37,000

When my car  is paid off I will have Two credit cards - total = 4,000

and my student loans which equals to about $57,000


They told me if I could defer or foreb my loans for three years they would not include them.

I also thought about going 30 years with the student loans for a lower monthly payment.

 

 Do mortgage companies just look at what I spend monthly or do they look at the entire amount??

 

Any advice would be appreciated....

 

Everything else is fine...

Message 1 of 6
5 REPLIES 5
ShanetheMortgageMan
Super Contributor

Re: Mortgage Loans, and Student Loans

They primarily look at what your outgo is each month, not the balance of the debt.  What sales price range are you looking at?  How much is the min. pay on the $4k in credit cards?  Are you going to be buying after your car is paid off?
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 6
Anonymous
Not applicable

Re: Mortgage Loans, and Student Loans

I'm looking at a house around $130,000... I pay around $85 on month on my $4k credit card.  and yes I plan on buying once my car is paid off...  Thanks in advance..
Message 3 of 6
ShanetheMortgageMan
Super Contributor

Re: Mortgage Loans, and Student Loans

Sorry for the delay, but you look real solid to qualify for an FHA loan (or VA if you are eligible).  With USDA and conventional, the student loan payments would be included no matter how long they are deferred for.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 6
Anonymous
Not applicable

Re: Mortgage Loans, and Student Loans

Thanks for the reply...

 

 I have one more question, I have less than 10 months on my car loan... The mortgage company is telling me to go ahead and pay off my car.. But I really want to save that money to put down on my house.. I didn't tell them I have only 8 months left on the car.. So my question is - Is it really true if you have less than 10 months on your auto loan, the mortgage company don't have to include it (for FHA loan)???

 

 

Thanks for all the Help!!

Message 5 of 6
Anonymous
Not applicable

Re: Mortgage Loans, and Student Loans

I have heard that rule only applies to payments under 100 per month.  I am sure it is up to the underwriter to some degre when figuring out the DTI.
Message 6 of 6
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