If you are considering purchasing a home and you have student loan debt, consider speaking with a mortgage professional as a starting point. There are all kinds of rules around how these are treated when it comes to qualifying for a mortgage. How your student loans are structured or in what stage of repayment they are in may dictate what type of loan program you will qualify for.
For example – most people incorrectly assume that if your loans are in deferment or you are not currently obligated to make payments then we don’t have to count a payment against you. While this may be true for some VA borrowers, most loan programs require the lender to calculate a minimum payment for deferred student loans – typically between ½% to 1% of the loan balance. However, if you are on an income-based repayment plan we may be able to use that payment instead, even if it’s $0.
Oftentimes we can help with advice on how to restructure and what the best loan program will be based on your unique situation. Call or Email us to find out more!
Happy House Hunting!
The FMT