Student loan debt and applying

[Anonymous]

My husband has 100k in student loans ( about 25k-35k are fees and interest. He was on an income based payment plan and it felt like it went up every month.)
I have about 45k in loans which are in deferment until I graduate ( which will be a long time. I am working part time and going to school. I have to finish a masters and licensure which will be paid for by my employer, I hope.)
We both have public service jobs so we both hope to have them forgiven.

I don't see us paying it down, honestly. My husband recently got his consolidated for a lower fixed interest rate so that will help.
Should we give up hope on ever buying a house? We are a family of five and have saved a few thousand. We are not struggling. We make enough to live. We are hoping for a USDA loan.
He makes about 35k a year, I make about 10k and we have never been late on rent. In fact, we are hoping to have a lower mortgage. We did file for chapter 7 about 18 months ago, due to medical and loss of jobs not financial mismanagement.
Besides the loans, we have no debt. I have credit cards which I pay off on time when I use it.
He pays 400 a month in child support.
My credit score is 720.
His score is about 560 ( we are hoping to get his score improved in the next two months before we apply)

Anyone have some words of advice or wisdom? I have a meeting o talk to a broker soon as well.

[SomewhereIn505]

I wouldn’t give up hope. Everyone has unique challenges to home ownership. 

Learn what you can here. Go to your meeting and learn from them. It might take a while to figure out the answer or develop an action plan. Just be smart. Know your profile and see what type of help is offered. 

[Anonymous]

I don't know much but I do know that the USDA does not accept IBR payment plans. They will only use 1 percent of what the student loans are or the amortizied student loan payment. And I do know that if you file Chapter 7 bankruptcy with USDA you have to wait 3 years before you can apply or “An elapsed period of less than 3 years may be acceptable for a loan guarantee if the applicant can show the bankruptcy was caused by extenuating circumstances beyond their control and has since exhibited a documented ability to manage their financial affairs in a responsible manner for a reasonable period of time following discharge". And for a streamlined processing you would need a middle score of at least 640.

[kc0039]

If you can raise your score, you can go conventional and go Freddie Mac. Lender's discretion if they will use it or not. 

 Student loan forgiveness, cancellation, discharge and employment-contingent repayment programsThe student loan payment may be excluded from the monthly debt payment-to-income ratio provided the Mortgage file contains documentation that indicates the following:

• The student loan has 10 or less monthly payments remaining until the full balance of the student loan is forgiven, canceled, discharged or in the case of an employment-contingent repayment program, paid, or
• The monthly payment on a student loan is deferred or is in forbearance and the full balance of the student loan will be forgiven, canceled, discharged or in the case of an employment-contingent repayment program, paid, at the end of the deferment or forbearance period

AND

• The Borrower currently meets the requirements for the student loan forgiveness, cancellation, discharge or employment-contingent repayment program, as applicable, and the Seller is not aware of any circumstances that will make the Borrower ineligible in the future

[homeloanexpert]

Wanting for buy a home and use either an FHA or USDA RDL will be out the question unless you can qualify with a payment caluated at 1% of the outstanding balance. The USDA has a 3 year waiting period after a Chapter 7, FHA is 2 years and Conventional is 4 years (unless you can make a case for extenuating circumstances which has a reduced waiting period). That said, that should give you plenty of time to bring up his scores so you can go Fannie or Freddie and hopefully by that time maybe eveb your SLs have be forgiven. But if not, as long as there is a payment reporting (IBR) we go with that payment, not the 1% rule. Hopefully he can piggy back off some of your credit card accounts. If not, make sure he opens  some new credit card accounts, pay on time, and try to keep your balances reporting at 10%.