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## Qualifying with 90k in student loans

Established Contributor

## Re: Qualifying with 90k in student loans

wrote:
I understand what Eve was saying and VA’s post. If a person has 90k in student loan debt and on IBR and that payment amount is \$150/mo, it does not matter. 1% is higher (\$900/mo) so that is why it will be used. In VA’s post it even shows that the greater must be used regardless. Only way around it that I can find is a graduated repayment plan and I don’t even know if that would work but it does fully amortize the loan BUT the payment amount increases every 24 months.

The post say:

 the greater of: o 1 percent of the outstanding balance on the loan; or

the monthly payment reported on the Borrower’s credit report;

or

the actual documented payment, provided the payment will fully amortize the loan over its term

So the question is, does that read the greater of (a or b, or c).  or does it read,  (the greater of a or b) or c?

Message 21 of 24
Valued Contributor

## Re: Qualifying with 90k in student loans

wrote:

wrote:
I understand what Eve was saying and VA’s post. If a person has 90k in student loan debt and on IBR and that payment amount is \$150/mo, it does not matter. 1% is higher (\$900/mo) so that is why it will be used. In VA’s post it even shows that the greater must be used regardless. Only way around it that I can find is a graduated repayment plan and I don’t even know if that would work but it does fully amortize the loan BUT the payment amount increases every 24 months.

The post say:

 the greater of: o 1 percent of the outstanding balance on the loan; or

the monthly payment reported on the Borrower’s credit report;

or

the actual documented payment, provided the payment will fully amortize the loan over its term

So the question is, does that read the greater of (a or b, or c).  or does it read,  (the greater of a or b) or c?

It's the great of A or B or (C) - you can use the actual documented payment, provided the payment will fully amortize the loan over its term. If

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 22 of 24
Valued Contributor

## Re: Qualifying with 90k in student loans

wrote:
I understand what Eve was saying and VA’s post. If a person has 90k in student loan debt and on IBR and that payment amount is \$150/mo, it does not matter. 1% is higher (\$900/mo) so that is why it will be used. In VA’s post it even shows that the greater must be used regardless. Only way around it that I can find is a graduated repayment plan and I don’t even know if that would work but it does fully amortize the loan BUT the payment amount increases every 24 months.

If that \$150 payment will pay off the loan by the end of the term, we can use that payment for FHA. For example:

Let's say your loan term is 50 years. \$150 X 12 = \$1,800 X 50 = \$90,000.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 23 of 24
Established Contributor

## Re: Qualifying with 90k in student loans

Will a IBR loan amortize out 50 years? I would assume that if they get forgiven after 20 or 25 years, that they would amortize past 20 or 25 years

Message 24 of 24
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