US Dept o Education reporting amount and DTI

[peme6040]

Recently I've been looking into buying a house.  I tried to get prequalified with a bank but they came back and said that my DTI is where I have no money left for housing due to my payments for student loans.  After looking at my credit, US Dept of Education is stating my projected payments to be $430/month for my loans---I'm on an Income Based Repayment plan where I don't make any payments right now.  So will a bank  just say no to me b/c of what US Dept of Ed. is reporting or do they consider my payment plans?

[SCF]

You can generally get a letter from your loan servicer stating what payment plan you are, how much the payments are, and how long the plan will last.  It seems like each mortgage lender and program can have a slightly different way of handling student loan payments and DTI - especially when a payment plan like IBR is involved.  I would reccomend getting that letter from your servicer and bringing it to your mortgage lender as a starting point.