Search
  • Gil 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.

0 views0 comments

Recent Posts

See All

gil@realestateloans.com Multiple Offers Ease as Affordability Is Further Eroded September 26, 2022 By: Jessica Lautz It is always good to know where we are with the real estate market, but it is essen

email or call Gil Kerkbashian with questions Written by Erik J. Martin Sept. 15, 2022/ 5 min read Edited by Michele Petry Share this page At Bankrate we strive to help you make smarter financial decis