Va Loan/ Student Loan Forbearance

[Anonymous]

I am closing on a property in the next few weeks i have the VAmortgage approval letter but case is currently with the underwriter. I have student loans that are currently in forbearance until 2020 will the underwriter look at that as being negative ?Student loan are only in forbearance because i took a break from school and was on active duty.

[CreditInspired]

Welcome OP

I’m surprised you’re this far along and haven’t brought this up with your LO. You should do this ASAP because it may have to be included in your DTI, which won’t be a problem if the payment doesn’t exceed your DTI.

I’m not trying to scare you but this is what I Googled:

Forbearance Can be a Problem. Forbearance occurs when you can't make your monthly student loan payment. ... To deal with this increased risk a VA mortgage lender is going to require that the full monthly payments on a student loan in forbearance be included in your DTI ratio.

GL2U

[Anonymous]

Thank you i did and was told shouldn’t be a problem due to the new VA Loan guideline law or something to that nature

[CreditInspired]

Ok, that’s good news. You should be good then. 😁

[VALoanMaster]

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@CreditInspired wrote:
Welcome OP

I’m surprised you’re this far along and haven’t brought this up with your LO. You should do this ASAP because it may have to be included in your DTI, which won’t be a problem if the payment doesn’t exceed your DTI.

I’m not trying to scare you but this is what I Googled:

Forbearance Can be a Problem. Forbearance occurs when you can't make your monthly student loan payment. ... To deal with this increased risk a VA mortgage lender is going to require that the full monthly payments on a student loan in forbearance be included in your DTI ratio.

GL2U

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That is not true, at all.

[Anonymous]

Please provide feedback

[VALoanMaster]

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@Anonymous wrote:
Please provide feedback

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Hi Chrisworewe,

I'm guessing you're asking me to clarify my post so here you go.

The VA guidelines do not differentiate based on whether your student loans are in deferment or forbearance.

Here are the guidelines:

https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_17_2.pdf

Nothing in any of the VA guidelines mentions anything regarding student loans in forbearance.

[Anonymous]

Thank you for all your help