How does student loan debt--especially under income-based plans--affect mortgage eligibility? Forum
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$alty
- Posts: 52
- Joined: Wed Oct 16, 2013 2:26 pm
How does student loan debt--especially under income-based plans--affect mortgage eligibility?
If borrower is on IBR or PAYE, is that monthly payment used to calculate the borrower's debt to income ratio? Or is it related to the term payment or the balance on the loan?
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bk1
- Posts: 20063
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Re: How does student loan debt--especially under income-based plans--affect mortgage eligibility?
Fannie Mae's guidelines are here: https://www.fanniemae.com/content/guide ... nt.20Loans
Even if you are on IBR/PAYE/etc, they guidelines use either: 1% of the balance, the 10 year repayment plan, or what a 20/25 year repayment plan would be (see http://thecollegeinvestor.com/5742/read ... repayment/). Presumably, these are all higher than your IBR/PAYE/etc payment.
Even if you are on IBR/PAYE/etc, they guidelines use either: 1% of the balance, the 10 year repayment plan, or what a 20/25 year repayment plan would be (see http://thecollegeinvestor.com/5742/read ... repayment/). Presumably, these are all higher than your IBR/PAYE/etc payment.
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$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?
cool thanksbk1 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.
