Student loan repayment guidelines when applying for a home loan?
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.