Mortgage rules

[SSH0126]

I’m looking for clarification.

One mortgage broker told me that they would have to use 1% of us loan total of 97k in the monthly bill calculation.

If I enter repayment and the total payment is less than 970 per month would that amount them be used in lieu of the 1%? Also, does the repayment plan matter?

[Anonymous]

I don't know about this, but I have seen this topic on the student loans page and mortgage page with people detailing the process they were required to go through. I think it varies. However I do know someone who is on an Income-driven repayment plan for federal loans and all they required was a letter and having payments of more than $1.
If worst comes to worst, maybe a federal loan could always be put on a standard repayment plan (with a forbearance if needed).
Good luck!

[Anonymous]

I just closed on a mortgage with 55k in student debt. Using 1% I was required to put 550/month toward my debt to income ratio. I am currently on an income based repayment plan where my actual payment is $70/Month. It took a lot of work, but I was able to find a lender "Trustmark" who would work with me and use my actual payment instead of the 1%. I was not able to find anything on the internet where this has been done before, but it worked for me. I should also note that I was applying for a USDA loan. My advice to you is to find a good mortgage broker with connections. 

Standard rules state that you have to use 1% min payment in your DTI calculation. There is a way around it though