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For DTI calculations, is it best my student loans NOT be in deferment?

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collics
Established Contributor

For DTI calculations, is it best my student loans NOT be in deferment?

I made a thread the other day about my Navy federal denial. The only reason listed was DTI. 

I have 124k SL and they are deferred as I am taking some employer paid classes. 

But I'm just brainstorming here, since they are calculating 1% of that balance which is $1250 approx, would approval be more likely if I were in income drive pmt plan which would make my pmts about $286?

 

If im missing a factor in this please let me know. 

Thank you all for your help. 

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5 REPLIES 5
dragontears
Senior Contributor

Re: For DTI calculations, is it best my student loans NOT be in deferment?


@collics wrote:

I made a thread the other day about my Navy federal denial. The only reason listed was DTI. 

I have 124k SL and they are deferred as I am taking some employer paid classes. 

But I'm just brainstorming here, since they are calculating 1% of that balance which is $1250 approx, would approval be more likely if I were in income drive pmt plan which would make my pmts about $286?

 

If im missing a factor in this please let me know. 

Thank you all for your help. 


Well it depends on if the lender accepts IBR on student loans or not; for example FHA mortgages will not use any IBR instead they use 1%.

Unfortunately, I do not know what Navy's underwriting criteria for DTI and student loans (I don't believe anyone here knows).

 

Unpopular comment: even though they are lusted over on this forum, Navy is just one lender out of hundreds if not thousands lenders/CU, if they don't like your profile find another lender/CU that does like it.

Message 2 of 6
collics
Established Contributor

Re: For DTI calculations, is it best my student loans NOT be in deferment?


@dragontears wrote:

@collics wrote:

I made a thread the other day about my Navy federal denial. The only reason listed was DTI. 

I have 124k SL and they are deferred as I am taking some employer paid classes. 

But I'm just brainstorming here, since they are calculating 1% of that balance which is $1250 approx, would approval be more likely if I were in income drive pmt plan which would make my pmts about $286?

 

If im missing a factor in this please let me know. 

Thank you all for your help. 


Well it depends on if the lender accepts IBR on student loans or not; for example FHA mortgages will not use any IBR instead they use 1%.

Unfortunately, I do not know what Navy's underwriting criteria for DTI and student loans (I don't believe anyone here knows).

 

Unpopular comment: even though they are lusted over on this forum, Navy is just one lender out of hundreds if not thousands lenders/CU, if they don't like your profile find another lender/CU that does like it.


Thank you for your response.

I can definitely see what you mean about Navy. I want to build a relationship with a good CU and my family has had much success with them as have many on this board. I know my profile has a ways to go, and if the SL remains an issue for them  consider banking with a different CU for credit purposes.

BK 7 Discharged May 2014. Removal Feb 2024! Let the countdown begin!!
Last App: Apr 2023
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FICO8s Dec 2019

FICO8s Oct 31 2023
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cleansl8tvet
New Contributor

Re: For DTI calculations, is it best my student loans NOT be in deferment?

There is a forgiveness program through the department of education that I completed and was able to wipe out all of my student loans. I also helped my wife wipe all of her student loans the same way. It is legit, but if you had any hardship/disabilities during or after your student loans you could do this. They also have pretty good repayment plans. I would try getting them discharged if you could.

Message 4 of 6
collics
Established Contributor

Re: For DTI calculations, is it best my student loans NOT be in deferment?


@cleansl8tvet wrote:

There is a forgiveness program through the department of education that I completed and was able to wipe out all of my student loans. I also helped my wife wipe all of her student loans the same way. It is legit, but if you had any hardship/disabilities during or after your student loans you could do this. They also have pretty good repayment plans. I would try getting them discharged if you could.


Unfortunately (and fortunately) I've had any disability issues. Never has any Unemployment hardship either. Smiley Sad

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Message 5 of 6
collics
Established Contributor

Re: For DTI calculations, is it best my student loans NOT be in deferment?


@collics wrote:

@cleansl8tvet wrote:

There is a forgiveness program through the department of education that I completed and was able to wipe out all of my student loans. I also helped my wife wipe all of her student loans the same way. It is legit, but if you had any hardship/disabilities during or after your student loans you could do this. They also have pretty good repayment plans. I would try getting them discharged if you could.


Unfortunately (and fortunately) I've had any disability issues. Never has any Unemployment hardship either. Smiley Sad


This is the only one I can see being possible however it doesn't say how much of an undue hardship (does only making $29k last year with $124k in SL count?) or if this needed to be done at the same time as the original BK filing (I was discharged back in 2014).

 

https://studentaid.gov/manage-loans/forgiveness-cancellation/bankruptcy

BK 7 Discharged May 2014. Removal Feb 2024! Let the countdown begin!!
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FICO8s Dec 2019

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