Mortgage & student loans

[Anonymous]

Howdy!

Here is my situation:

annual income:  $95k

monthly income:  $7,917

current monthly auto loans:  $1,250

current monthly cc debt:  $250 (total $3,500)

I have  $200k worth of student loans to repay and they are currently in forebearance.  Am I better off starting to repay them now so they can be part of my DTI? or will the lenders make an assumption for the DTI portion of the student loans even while in forebearance.  I will eventually start to repay my student loans but I'd like to wait until my auto loans are paid off but I simply cant pay the cars and student loans and a new home (I am targetting a home in the $240-$300 range).   Thoughts?  advice?  My credit is in the 650+ so I'm not too worried about that.

thanks from @vegas!

[Lel]

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@Anonymous wrote:

Howdy!

Here is my situation:

annual income:  $95k

monthly income:  $7,917

current monthly auto loans:  $1,250

current monthly cc debt:  $250 (total $3,500)

I have  $200k worth of student loans to repay and they are currently in forebearance.  Am I better off starting to repay them now so they can be part of my DTI? or will the lenders make an assumption for the DTI portion of the student loans even while in forebearance.  I will eventually start to repay my student loans but I'd like to wait until my auto loans are paid off but I simply cant pay the cars and student loans and a new home (I am targetting a home in the $240-$300 range).   Thoughts?  advice?  My credit is in the 650+ so I'm not too worried about that.

@Anonymous from @Anonymous!

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When do you expect the forebearance to end - that is, when will be you be required to start making payments on your student loans?  Do you know what your monthly payment will be?

[Anonymous]

I have 10 months left in this period and I still have 24 months left to opt into it. I know student loan repayment laws have recently changed And just quickly looking at the new charts based on AGI and family size I should land about at $720/mo or so. So that kills my dti/mortgage ratio.

[StartingOver10]

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@Anonymous wrote:
I have 10 months left in this period and I still have 24 months left to opt into it. I know student loan repayment laws have recently changed And just quickly looking at the new charts based on AGI and family size I should land about at $720/mo or so. So that kills my dti/mortgage ratio.

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Actually, the vehicle loans kill your DTI/mortgage ratio

The student loans are extensive but the auto loans are discretionary. You might consider getting rid of the auto loans to free up funds to purchase a home.

[Anonymous]

Hi!  I have almost the exact same situation only my loans are in deferment as I take part time online classes.  Despite being in a program expected to last over two years, the student loans (I have about 150k) apparently were required to go into my DTI.  I have no other debt then those but those limited the amount I am able to qualify for.  I had to go to each loan and get an estimate of the monthly repayment amount --many loans now have that online. 

I argued extensively on this but apparently this was the requirement.

[DallasLoanGuy]

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@Anonymous wrote:
I have 10 months left in this period and I still have 24 months left to opt into it. I know student loan repayment laws have recently changed And just quickly looking at the new charts based on AGI and family size I should land about at $720/mo or so. So that kills my dti/mortgage ratio.

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they have to be deferred for 12 months to be excluded from dti

with that income, are they really blowing the debt ratios?

[Anonymous]

Mine have been deferred for three years and I still have 2.5 years left of my program -- and the STILL included them in my DTI.  Did not even ask for verification of the program or anything.  Just said its automatic.

[DallasLoanGuy]

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@Anonymous wrote:

Mine have been deferred for three years and I still have 2.5 years left of my program -- and the STILL included them in my DTI.  Did not even ask for verification of the program or anything.  Just said its automatic.

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if it doesnt blow up th dti or otherwise mess with the approval.... i leave them in.... why document something tht is not necessary?!?!?!

but it is NOT automatic.

maybe your lender has that guideline. FHA says they can be excluded.

[Anonymous]

DLG,

How are FHA guidelines vs USAA? USAA can't do a pre-qualification for VA loan due to "Excessive Student loan debt". Does it make any sense following up with USAA about FHA options or should I try someone like Wells Fargo?

[DallasLoanGuy]

just ask them.

they should be able to answer your question without doing anything.

ask them: "Does the same guidlines apply to FHA on student loan debt?"

other lenders do not have that lender guideline overlay.

NOW!!!  

the deal still has to make sense. if you have $1000/mo income left after mortgage and other debt payments..... but your student loans kick in in 24 months and are $700/mo.... well, that just doesnt make sense.