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URGENT: FHA Deferment or Forbearance

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Pesdaniel
Established Member

URGENT: FHA Deferment or Forbearance

I've been approved for a Mortgage loan with a few requirements. For my last approval since closing is scheduled for next week, the lender wants me to show written document that my student loans have been deferred to at least 12 months from closing. FedLoan provided a letter of General Forbearance which is active until October 2015. Now do you think the underwriter may reject the forbearance letter or will he/she exclude the student loans payment to keep my Debt/IR low?

Message 1 of 14
13 REPLIES 13
Dw4250
Valued Contributor

Re: URGENT: FHA Deferment or Forbearance

They may approve the loan but i doubt they will exclude your student loan from your DTI.
Message 2 of 14
Pesdaniel
Established Member

Re: URGENT: FHA Deferment or Forbearance

But they asked to have the loan payments off for 12 months. So I had FedLoan submitted the document showing that the loan payments are postponed until 10/2015. Shouldn't this be enough?

Message 3 of 14
TimeToRecover
Established Contributor

Re: URGENT: FHA Deferment or Forbearance

10/2015 would only be 11 months at this point right?


Starting Score: 570 ish
Current Score:EX (701) EQ (711) TU (705)
Goal Score: 750
In My Wallet: GE Care Credit (8K) BestBuy (6K) BofA Cash Rewards Signature Visa (7K) Cap One Quicksilver (10.5K) Chase Freedom (4K) Lowes (6K) VS Angel Card (2.4K), Macys (4K)
Message 4 of 14
Pesdaniel
Established Member

Re: URGENT: FHA Deferment or Forbearance

October 2014 to October 2015 come on now that's 12 months.

Message 5 of 14
Anonymous
Not applicable

Re: URGENT: FHA Deferment or Forbearance

Well, if you DTI is too high with the student loan payments, should you really be buying this house? I mean they are on hold for 11 months but then they will come due again and if you can't afford the house payment and the student loan payments, I would be a bit concerned. I have $112,000 in student loan debt and I don't make a ton of money but I was able to get a home without asking to defer my student loans. Be very careful because you don't want to set yourself up for disaster in 11 months.

Message 6 of 14
Pesdaniel
Established Member

Re: URGENT: FHA Deferment or Forbearance

Thank you but by the Grace of God I've been down that road it won't happen again. Now those payments are not higher than $125 a month and based on what I do for a living I can take care of my mortgage and my everyday bills. The deferment is the lender's requirement which I'm dealing with (when you do FHA). I owe about 60K in student loans. 

Message 7 of 14
TimeToRecover
Established Contributor

Re: URGENT: FHA Deferment or Forbearance

I guess Im confused.  Are saying the lender won't allow a FHA loan to a person with a student loan.  If so that is an interesting overlay.  This I can guarantee is NOT a FHA requirement.  I am getting an FHA loan and I have a student loan that is most definitely NOT in defferrement. 


Starting Score: 570 ish
Current Score:EX (701) EQ (711) TU (705)
Goal Score: 750
In My Wallet: GE Care Credit (8K) BestBuy (6K) BofA Cash Rewards Signature Visa (7K) Cap One Quicksilver (10.5K) Chase Freedom (4K) Lowes (6K) VS Angel Card (2.4K), Macys (4K)
Message 8 of 14
Pesdaniel
Established Member

Re: URGENT: FHA Deferment or Forbearance

You are indeed confused. FHA law says that student loans must be deferred 12 months from closing date. That way, the loan won't be included in the DTI. My question is will a lender accept the forbearance letter from FedLoan which is as well 12 months. According to FedLoan, "A student loan deferment or forbearance allows you to temporarily postpone your monthly payments under certain circumstances". So why would this be different for some lenders?

Message 9 of 14
TimeToRecover
Established Contributor

Re: URGENT: FHA Deferment or Forbearance

I am getting a FHA loan and my student loans are not in forebearance.  an you cite where this is required by FHA?  I have never seen Shane or any of the other experts on here mention anything like FHA requires student loans be in forebearance.  

 

I think you are saying if you don't want the loan included in your DTI it must be in forebearnace for 12 months.  THAT is totally different then requireing the loan be in forebearnace to get an FHA loan.

 

But yet you state the loan payment would not be an issue for your DTI.

 

I think there still must be more to this 


Starting Score: 570 ish
Current Score:EX (701) EQ (711) TU (705)
Goal Score: 750
In My Wallet: GE Care Credit (8K) BestBuy (6K) BofA Cash Rewards Signature Visa (7K) Cap One Quicksilver (10.5K) Chase Freedom (4K) Lowes (6K) VS Angel Card (2.4K), Macys (4K)
Message 10 of 14
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