I'm in deferment now and was told by a mortgage rep that they have to use 1% of the student loan balance, which keeps me from either qualifying altogether according to one company and another says the DTI limits me to lower purchase price. Salary is $48k. I'll have approx $100k in loans when finished in Dec. I'm trying to improve scores to at least 580 for FHA, 3.5% down. Would like to get closer to $180-220 purchase price for decent homes in my area. But DTI with the student loans brings it to $145-160, approx. Which repayment option should I choose for the lowest fixed payment but also to help me qualify for a mortgage or higher purchase amount? I don't expect any large salary increases when finished so need a fixed payment.
