Question on Mortgage and School loan

pizza1 · ‎11-09-2015

Ive been doing research, and I guess im just not clear on this. Could someone please help me better understand this??

I have a Federal school loan with a Bal of $26k....the scheduled payments of literally $78/month, but I pay $100. The terms are set for 306 months, LOL!

So, anyway...when I go to get my preapproval for mortagage, (my car will be paid off by then too), the only debt Ill have in my School loan since I PIF all my CC's. how will they calculate my school loan into this to qualify? Will they take the scheduled $78 payments, my $100 payment, or will they come up with a higher number they will factor in?

Really confused on this topic... Thanks for any insight!!

Anonymous · ‎11-09-2015

The LO will include the $78 in your liabilities. If that's the only liability you have then you're good to go.. Rent, electric bill and etc., things like that is not included.

Anonymous · ‎11-09-2015

Depends on the kind of loan you're looking for. FHA & VA have one set of rules, and conventional loans have another set on how they determine school loans and DTI.

pizza1 · ‎11-09-2015

Well, since Im a first time home buying, and low down payment, plus Im not 4 yr post BK dc for a conventional loan....im stuck with other routes to obtain one.

Anonymous · ‎11-09-2015

OP's loans are not in deferment. If the credit reports shows $78 monthly then that's what is added to their liability.

Anonymous · ‎11-09-2015

@Anonymous wrote:
OP's loans are not in deferment. If the credit reports shows $78 monthly then that's what is added to their liability.

Weatherguy, SouthEast is still correct. FHA will take the payment on your report, but conventional will take the higher of 1% of the balance or the actual payment... unless the borrower can prove the actual payments will fully amortize the loan without payment adjustments. Basically, conventional loans don't like the graduated or IBR repayment options unless the actual payment is higher than 1% of the remaining balance.

pizza1 · ‎11-09-2015

@Anonymous wrote:
@Anonymous wrote:
OP's loans are not in deferment. If the credit reports shows $78 monthly then that's what is added to their liability.
Weatherguy, SouthEast is still correct. FHA will take the payment on your report, but conventional will take the higher of 1% of the balance or the actual payment... unless the borrower can prove the actual payments will fully amortize the loan without payment adjustments. Basically, conventional loans don't like the graduated or IBR repayment options unless the actual payment is higher than 1% of the remaining balance.

so 1% would roughly be around $260-$280? even at that payment, I think Id be ok for qualification??? That would be my only debt

Anonymous · ‎11-09-2015

Correct, 1% would be $260. What is your income and what purchase prices are you looking at?

pizza1 · ‎11-09-2015

@Anonymous wrote:
Correct, 1% would be $260. What is your income and what purchase prices are you looking at?

@Anonymous wrote:
Correct, 1% would be $260. What is your income and what purchase prices are you looking at?

$65k..../.....$170k-200k

Im single, so its my income only. Currently middle score is 684. Not looking till next October

Anonymous · ‎11-09-2015

@pizza1 wrote:
@Anonymous wrote:
Correct, 1% would be $260. What is your income and what purchase prices are you looking at?

@Anonymous wrote:
Correct, 1% would be $260. What is your income and what purchase prices are you looking at?
$65k..../.....$170k-200k

Im single, so its my income only. Currently middle score is 684. Not looking till next October

The student loans won't make or break your DTI in that price range. Best of luck!