Student loans have me feeling close to giving up

[Anonymous]

I'm Praying someone can give me some hope. I was planning on going with USDA until I saw the new update where they will not accept IBR. I make $2400 gross monthly with a $432 car payment. That's my only monthly debt except for a $22 monthly ibr for my $40k of student loans which will not change unless I get over $10000 more income. With my IBR I was barely under the DTI ratio for a $90k loan. If Im required to calculate 1% of my total debt I'll never be approved.
I'm thinking I could move to FHA if I can gather the down payment. I've tried researching FHA and student loans but all Ive found is that they use the 1% if the loans are deferred. Does FHA accept IBR?
I've read that there has to be documentation that the payment amount wont change. I wont be able tp provide that documentation because I have to requalify annualy but what I dont understand is if my income changes and my payment changes then that wouldn't be a big deal because I would have more income to cover it and my mortgage rate wouldnt be changing.
Somebody please help me here Im really losing hope and tired of being punished for getting an education.

[Imperfectfuture]

Why USDA is changing, is because subsidies are based on income as well. So, if your income goes up, so does the interest rate (or in your case, minor subsidy). I bet the problem has occurred where the double whammy of both going up has produced problems with repayment, or even just keeping up with maintaining the home.

With FHA, you will qualify for lower amount, because interest is higher (plus, no subsidy).

You are not being punished, they have had problems with other borrowers, hence the changes in rules. Hope that helps.

[Anonymous]

FHA will accept IBR as long as there is a documented payment being made on your credit report. If you are in deferment, then you can get a letter from your lender stating what your payment would be. If you cannot get any kind of documentation about your payment, then they'd use 2% of the balance for your DTI. Also, you should look into down payment assistance programs in your area if you have not done so already. http://downpaymentresource.com/are-you-eligible/

[Anonymous]

I understand that and agree with why it has to happen. Im just feeling defeated. So with FHA I can use the IBR or not? ...even though I'll be approved for less

[Imperfectfuture]

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@Anonymous wrote:
I understand that and agree with why it has to happen. Im just feeling defeated. So with FHA I can use the IBR or not? ...even though I'll be approved for less

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I would find a loan officer, mortgage broker, and run the numbers.  They can also give you pointers so you can qualify for more.

[Anonymous]

Thank you Southeast80 that gives me hope!... On average, how difficult are the down payment assistance programs to get approved for? Ive never spoken to anyone who has dealt with them

[Anonymous]

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@Anonymous wrote:
Thank you Southeast80 that gives me hope!... On average, how difficult are the down payment assistance programs to get approved for? Ive never spoken to anyone who has dealt with them

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I personally don't qualify for any of those kinds of programs for where I live or know anyone who has used them, but I can imagine that it can't be too difficult if you meet the requirements from that website I posted earlier. Also, you can also give NACA a try and see if that is something that can work for you as well.