Reducing my DTI through IBR or Extended Repayment

[Anonymous]

I'm working with a mortgage lender to purchase a home and I'm right on the cusp of having a DTI that's too high. I'm trying to work a little magic and thinking about switching to either IBR, Graduated Repayment, or Extended Repayment through Great Lakes. I have not missed or been late with any payments. I'm paid ahead actually and will continue to make the same payment amount no matter which repayment plan I switch to. My loan balance is 6 federal loans for a combined 27k down from 35k all serviced by Great Lakes, and my income is 60k/year.

Right now factoring the mortgage for the house I'm looking my DTI will be 47%. I'm purchasing this with DW, though the loan will be in only my name because our income is too high to qualify together for 1% down program through a Fannie Mae grant. My payments are 433/month but I've been paying 600/month. If I could qualify for IBR and drop my payments to 1% of the current balance that would give us some wiggle room to find the right place with the financing we want and not eat into our emergency cash or savings. 

Anybody have any experience with this? I'm also concerned about how they will report to the CRA's. Will they put any notes about hardship in my reports? 

If I pay off one of my loans will my minimum payments drop? I have one with a balance of $600 that I could pay off immediately if it will drop my total payment. 

Thanks!

[Anonymous]

.....To anyone that is going through loan rehab, keep going! i rehabbed my defaulted loans and through all the knowledge on this site have taken DW and my own credit scores from the bottom of the barrel in the 500's to the low to mid 700's since I started reading in Jan 2016. I haven't updated my scores in my sig in a while but this site is a wealth of info. You can do it!

[Simply827]

Hello there

I believe your income is too high for IBR. I was on it years ago and IIRC, it would have phased out for me around 50k. Be sure to check with your lender though, just to be sure. If you can qualify for extended repayment, that may be your best bet. Also if you pay off one of your loans, and that payment being gone will make enough of a difference in your DTI, then that's an option too.