How does student loan debt--especially under income-based plans--affect mortgage eligibility?

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$alty
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Joined: Wed Oct 16, 2013 2:26 pm

How does student loan debt--especially under income-based plans--affect mortgage eligibility?

Postby $alty » Fri Feb 17, 2017 7:45 pm

If borrower is on IBR or PAYE, is that monthly payment used to calculate the borrower's debt to income ratio? Or is it related to the term payment or the balance on the loan?

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bk1
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Joined: Sun Mar 14, 2010 7:06 pm

Re: How does student loan debt--especially under income-based plans--affect mortgage eligibility?

Postby bk1 » Fri Feb 17, 2017 7:55 pm

Fannie Mae's guidelines are here: https://www.fanniemae.com/content/guide ... nt.20Loans

Even if you are on IBR/PAYE/etc, they guidelines use either: 1% of the balance, the 10 year repayment plan, or what a 20/25 year repayment plan would be (see http://thecollegeinvestor.com/5742/read ... repayment/). Presumably, these are all higher than your IBR/PAYE/etc payment.

$alty
Posts: 52
Joined: Wed Oct 16, 2013 2:26 pm

Re: How does student loan debt--especially under income-based plans--affect mortgage eligibility?

Postby $alty » Sat Feb 18, 2017 12:21 pm

bk1 wrote:Fannie Mae's guidelines are here: https://www.fanniemae.com/content/guide ... nt.20Loans

Even if you are on IBR/PAYE/etc, they guidelines use either: 1% of the balance, the 10 year repayment plan, or what a 20/25 year repayment plan would be (see http://thecollegeinvestor.com/5742/read ... repayment/). Presumably, these are all higher than your IBR/PAYE/etc payment.


cool thanks




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