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deferred student loans- are they taken into account?

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deferred student loans- are they taken into account?

My DH and I are going to be applying for a VA home loan at the end of this year. He is the active duty military member. I have no monthly debt, but I have a student loan that is deferred for 3 more years. Will the mortgage broker take what the monthly payment would be into play when considering our DTI? We both have OK credit, that we are actively repairing ( I love MYFICO!!) He is the only one with steady income.
 
second question;;;I will be getting a job in the next month or so.... will they take that income into consideration, or not because it will only be around 7 months of employment before applying?
 
Thanks!
I am shooting for 700 within the next year.
as of 2/20/2008
TU: 623, EXP: 553, EQ: 552
Message 1 of 10
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Established Contributor

Re: deferred student loans- are they taken into account?

Yes the defferred student loans are figured into your DTI b/c ultimatially they have to be paid off.
Message 2 of 10
Regular Contributor

Re: deferred student loans- are they taken into account?

from what I've read, they are not taken into account if they are deferred for at least 12 months from the date of closing. Is this different for VA loans?

Starting Scores:10/09/13 EX ???; EQ 661; TU 668
Current Scores: 11/23/13 EX 655; EQ 679; TU 705
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Contributor

Re: deferred student loans- are they taken into account?

I've heard both sides. They are deferred for 3 more years, and we will be looking to purchase at the end of this year. I will also be going to graduate school in a few years, which in actuality means they will be deferred for up to 6 years...
I am shooting for 700 within the next year.
as of 2/20/2008
TU: 623, EXP: 553, EQ: 552
Message 4 of 10
Established Contributor

Re: deferred student loans- are they taken into account?

my student loan is defferred and we are in the middle of refinancng and ever lender we have spoken with considers it into DTI because generally your getting a 15y, 30yr loan and during that time your going to have to start paying on the student loan.
Message 5 of 10
Regular Contributor

Re: deferred student loans- are they taken into account?



@Badcreditguy wrote:
my student loan is defferred and we are in the middle of refinancng and ever lender we have spoken with considers it into DTI because generally your getting a 15y, 30yr loan and during that time your going to have to start paying on the student loan.





What kind of loan? VA? FHA? Conventional?

Starting Scores:10/09/13 EX ???; EQ 661; TU 668
Current Scores: 11/23/13 EX 655; EQ 679; TU 705
Goal Scores:700+ for all
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Contributor

Re: deferred student loans- are they taken into account?

We will be going with VA...
You would think they would take into consideration that when the deferment period is up, your income should increase... but I guess they would need solid evidence of that....
I am shooting for 700 within the next year.
as of 2/20/2008
TU: 623, EXP: 553, EQ: 552
Message 7 of 10
Regular Contributor

Re: deferred student loans- are they taken into account?



@acissej323 wrote:
We will be going with VA...
You would think they would take into consideration that when the deferment period is up, your income should increase... but I guess they would need solid evidence of that....





That's what I was thinking since after 3 years, you will have to start paying your loans, but in 3 years, you will have a higher income as well. So, I guess it starts getting a little complicated.

Starting Scores:10/09/13 EX ???; EQ 661; TU 668
Current Scores: 11/23/13 EX 655; EQ 679; TU 705
Goal Scores:700+ for all
Take the myFICO Fitness Challenge
Message 8 of 10
New Visitor

Re: deferred student loans- are they taken into account?

There are alot of incorrect answers posted in this forum. The residual income requirement is of bigger concern than DTI. 

 

The following items may be excluded from the ratio:

  1.  Installment debts with fewer than ten months remaining as long as they do not cause a severe impact to the family’s ability to make payments on the obligation
  2. 401k loans
  3. Student loans that are deferred more than 12 months after closing
  4. Co-signed debts with the following documentation
    a.        Evidence payments have been made in a timely manner for 12 months
    b.       Evidence payments have been made by the person for whom the borrower cosigned

 

Please feel free to message me with any VA loan quesitons.

[Please do not post your e-mail address. Thanks! -- Raine]

Message Edited by Raine on 01-31-2009 09:44 PM
Message 9 of 10
Community Leader
Super Contributor

Re: deferred student loans- are they taken into account?

Just as bhumrick posted, for VA loans if the deferred student loan payment begins within 12 months of closing it's included in the DTI - if it doesn't begin within 12 months of closing then it's not.

 

Conventional is different, student loan payments are always included.

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