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  • Writer's pictureGil Kerkbashian

Student loan repayment guidelines when applying for a home loan?

gil@realestateloans.com


2021 Student Loan Guidelines:


Fannie Mae Conventional

Income-Based Payment – Allowed – $0 ok with supporting documentation* – Updated April, 2017

Amortized Payment – Ok with all lenders

Deferred or forbearance use 1% of the loan balance.

*Expect to get documentation from your student loan servicer



Freddie Mac Conventional

Income-based payments – May use payment as reported on credit report

$0 payment on NO LONGER used – must use .5% – See PSLF Update

Can exclude from debt to income calculation if less than 10 months payments left

Deferred or forbearance use .5% of loan balance – Effective November 1st, 2018



FHA Government Insured

Non-amortized Payment – Not Allowed | Must use 1% of the loan balance

Amortized Payment – Ok with all lenders

Deferred or forbearance use 1% of the loan balance.



VA Guaranteed Loan

Non-amortized Payment – Allowed, even with $0.00 payment

Amortized Payment – Ok with all lenders

Deferred or forbearance must use 5% of loan balance divided by 12

Expect to get documentation from your student loan servicer



USDA Guaranteed Loan – Updated September 2019

Non-amortized Payment – Use payment on credit report 0r .50%, whichever is greater.

Amortized Payment – Ok with all lenders

Deferred or forbearance use .50% of the loan balance.

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