Qualifying to Purchase A Home With Student Loans
You may have heard that you don’t have to count your deferred student loan payments on your qualifying debt when looking to get pre-approved for a mortgage. In the past this was allowable. Both FHA & Conventional loans allowed you to eliminate your existing and/or future monthly student loan payments dependent on when the payments came due. Each had their own specific guideline and time-frame of what was acceptable.
As of this last month, August 2015, this is no longer the case. No matter when your student loans come due, per FHA and Conventional guidelines lenders will be required to count the payment against your existing debt.
It would be advisable to check into either refinancing or consolidating your student loans to get a lower monthly payment. Make sure to always read the fine print and know exactly what you are refinancing into and/or consolidating terms.
If you have any questions or would like to get pre-approved please contact us.