IBR set at 0....how can I get it increased?

[kjel]

You didn't mention what state you are in, but each state has a Housing Finance Agency (HFA) that underwrites first mortgages, often without any mortgage insurance. They also tend to be much more forgiving on the underwriting side. Might be worth a look.

[Anonymous]

I'm in Alabama. I'll look into this, thanks!!

[Booner72]

Who is saying it isn't allowed?

Have you looked into the Homepath Financing as an option?

[Anonymous]

The usda website says ibr payment of 0 is not allowed. I copied and posted it a few comments up.

[kjel]

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@Anonymous wrote:
The usda website says ibr payment of 0 is not allowed. I copied and posted it a few comments up.

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Here's the link to the Alabama Housing Finance Authority's mortgage program in case you couldn't find it. Like I mentioned previously, most HFAs have manual underwriting, allowing for explanation of your particular circumstances as well as being forgiving on past credit issues

http://www.ahfa.com/Step_Up/What_is_Step_Up_.aspx

minor edit to fix a problem with your link.

webhopper

[GST2008]

If your husband starts his home business any time soon, why not submit the paperwork for alternative documentation of income and have them adjust your monthly payment based on the new amount?  This way, you won't have to wait until after you file your 2013 taxes.

On the bright side, having a $0.00 monthly payment isn't the worst problem in the world  But the formula used to compute the payment definitely makes buying a home difficult.  If I don't put money into defferred comp and my IRA, my payment goes up; however, since all my extra savings is going into these savings vehicles, it leaves me with little money to save for a down payment on a mortgage, so I feel your pain in trying to find a good balance.

[Anonymous]

Yes, there are worse things than a payment of 0! Ha! We are in year 3 of a side business, but took losses the last2 years. This next tax season, we will claim the income, yet take no deductions so our income is enough to owe on the loans.

We just really want to buy in a usda are that expires in September. Thanks for the link, I'm going now!

[tammyjk]

I just went through this myself.  If you dont mind me asking what is your debt to income ratio with the student loans figured in?  I was told USDA can go as high as 47 percent.  Sadly, with my student loans I missed that mark by 1 percent.  If your debt to income is in the right range and your broker uses their 1 percent, you'll be fine.  By saying 0 is not acceptable, it means that you'll have to use the 1 percent calculation and show a payment amount in your DTI. 

[algorithmslave]

What about an Economic Defermant? Is that allowed? Perhaps you could discuss attending school again for an in-school defermant just long enough to get the home loan? I would ask about other possible options. 

[Anonymous]

So...I just got rid of 2 dependents on my ibr paperwork. Student loan people said I could claim any and all kids I have. We ran the numbers for a family of 7, then 6, and now applying it for a family of 5! Puts payments at $9 a month