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How does student loan debt--especially under income-based plans--affect mortgage eligibility?
Posted: Fri Feb 17, 2017 7:45 pm
by $alty
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?
Re: How does student loan debt--especially under income-based plans--affect mortgage eligibility?
Posted: Fri Feb 17, 2017 7:55 pm
by bk1
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.
Re: How does student loan debt--especially under income-based plans--affect mortgage eligibility?
Posted: Sat Feb 18, 2017 12:21 pm
by $alty