@Anonymous wrote:
Has anyone had any luck getting approved for a home under the IBR plan? I am speaking with a lender now and am on edge because when I spoke to him a few months ago, when my loans were part of IBR, there was no issue with getting pre-approved. Now I am starting the process all over again after getting married and he mentioned the new student loan guidelines may affect my qualifications. I am seeing that the new rule is not effective until 6/30/16. Is it effective now? I have been reading all day and the articles vary with some companies accepting the payment on your credit report or 1% of your student loan balance whichever is greater while another one is saying that the IBR plan is good as long as those payments show on the credit report but if it does not or if the credit report says 0 then the 1% of your student loan balance apply. My monthly payments show on my credit report. My scores are at 650 but the debt is the issue. I have income of over $80k and my husband has limited ie bad credit so I don't want to have to clean up his credit to use his income because he doesn't make much money but with the new FHA lending guidelines then that may be the case. I don't want to spend money cleaning up his credit when I can do mine easier since I have done it before to raise my score to where it is. It took a year but it can be accomplished but his scores are in the mid to lower 500s and I don't know how his credit is looking so now I am concerned that I won't be able to obtain a mortgage since student loan debt is over $100k but I can pay off other debt faster than that. Anyone had any luck with the new FHA guidelines and student loan debt? Suggestions?
I was in the same boat. I have law school debt that has been on an IBR for the last 5 years. I was with one broker and my file sat with his underwriter for 3.5 weeks. He didn't think there would be any issues with my file. Offered 152K with seller paying 4K in closing and I make 85K/year. Well the day the appraisal was supposed to happen he calls and says that his lender will not accept the loan because of the IBR payment not fully amoritizing the loan in 20 years and my payment was being reported on my credit report at $585/month. He called another broker of his and they took my file over. Got automated approval in 1 day and then within 5 days the new broker had my appraisal done, underwriter approved with only 2 LOEs needed, and now I am set to close on the 10th. Many lenders are already using the new guidelines so you just have to shop around until you find one that isn't, but do it asap. You have to have an offer on a house before being assigned an FHA number, I believe but I could be wrong. If that is the case, you have to have a contract before the 30th in order to qualify for an FHA loan.
Best of luck to you!
