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Student loan forbearance and deferment

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Estexan07
Valued Member

Student loan forbearance and deferment

Simply put, do the monthly payments on a student loan in forbearance or deferment count in your DTI?

 

My wife and I are applying for our second home mortgage (selling current home, moving, buying a home). She was a student who graduated with her bachelors in May. She starts her DDS degree in August. So, we stuck her student loans in forbearance for the time being and they will go in deferment as soon as her schooling starts in August.

 

Will these be included in our DTI? I know mine will, I pay on them monthly, but hers? We are discussing FHA and 5% down conforming. 

 

Thank you! 

7 REPLIES 7
Anonymous
Not applicable

Re: Student loan forbearance and deferment

mine did not count in my dti

Message 2 of 8
Estexan07
Valued Member

Re: Student loan forbearance and deferment

Oh, that's encouraging. Was this a conventional or FHA loan?

 

Thanks!

Message 3 of 8
Anonymous
Not applicable

Re: Student loan forbearance and deferment

it was a VA loan

Message 4 of 8
Anonymous
Not applicable

Re: Student loan forbearance and deferment


@Estexan07 wrote:

Simply put, do the monthly payments on a student loan in forbearance or deferment count in your DTI?

 

My wife and I are applying for our second home mortgage (selling current home, moving, buying a home). She was a student who graduated with her bachelors in May. She starts her DDS degree in August. So, we stuck her student loans in forbearance for the time being and they will go in deferment as soon as her schooling starts in August.

 

Will these be included in our DTI? I know mine will, I pay on them monthly, but hers? We are discussing FHA and 5% down conforming. 

 

Thank you! 


If you are using FHA or Conventional, they will use either what your payment is or 1% of the balance, whichever is greater. FHA will be using the 1% in July of this year.

Message 5 of 8
Estexan07
Valued Member

Re: Student loan forbearance and deferment

Well then, looks like I'll be applying for conventional without my wife. 

 

Her loans total $308/month, not being paid since they are in forbearance/deferral. Leaving those off drops my DTI from 9% to less than 4%, before mortgage. 

Message 6 of 8
howiez28
New Contributor

Re: Student loan forbearance and deferment

How far out was for deferment at the time of your VA loan being processed?

Message 7 of 8
RESSECUP
Regular Contributor

Re: Student loan forbearance and deferment

i took a home ownership class in January, and the lender stated that loans in forebearence are frowned up as it looks like you are having a hardship.  However, as another poster stated those that are in deferment 1-2% of the balance is used. 

Message 8 of 8
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