sl and dti ratio

[treschic]

I have alot of student loans that are currently in forebarance, i'm wondering for dti purposes, will they consider what the min. monthly payment is as they are right now, or if i were to consolidate them?  they are with 3 different lenders, and i don't want to consolidate until they are out of forebarance.  but, depending on which method they use, my purchase price would be reduced drastically.  i'm just wondering, for mortgage approval, do i have consolidate my loans now, to reduce my dti ratio? without consolidating them, my dti ration will be 45% and i don't have any compensating factors, plus the program i am attempting to go through requires your dti to be <40%. if i consolidate them, i will be at 39%. (i'm including piti for the price that houses in the neighborhood are currently selling for including property taxes and everything)

Message Edited by angiepharm on 02-25-2008 01:24 PM

[treschic]

bump

[ShanetheMortgageMan]

It depends on the loan program you are qualifying for, and if they would include payments on deferred/in forebarance student loans or not... since you already have a specific program in mind, the most accurate answer will be from the lender you are applying with.  If they do include them in your debt ratio, then consolidating them into a lower payment would lower your debt to income ratio.  There are plenty of programs that would be fine with a DTI around 45% though.