Most mortgage borrowers and loan officers do not realize that there are alternative monthly student loan payments that can be used with qualifying for mortgage with deferred with student loans instead of the 1.0% of the balance.
- IBR does no longer count and all deferred student loans needs to be accountable for with regards to monthly payment.
- Borrowers who work for the government and qualify for student loan forgiveness programs still need their student loan balances calculated for debt to income calculations.
How To Get Lower Than 1.0% Of Student Loan Balance Monthly Payment
Here is how borrowers can get a lower monthly student loan payment amount for DTI Calculations instead of the 1.0% of the balance:
- Contact Student Loan Provider.
- State that you are applying for mortgage and need fully amortized monthly payment amount over extended payment plan.
- Normally that amount turns out to be 0.50% of the student loan balance.
- The extended term is normally 25 years.
- Borrowers do not need to change their student loan plans.
- Borrowers just needs a written hypothetical statement on what the monthly fully amortized payment will be on an extended payment plan.
VA Mortgage With Deferred Student Loans
The only mortgage loan program that exempts monthly amortized payments on student loans are VA Loans. VA exempts monthly student loan payments on student loans that has been deferred for 12 or more months.
Home Buyers having issues qualifying for mortgage with deferred student loans, please contact us at 1-800-900-8569 or email us at firstname.lastname@example.org. We are available 7 days a week, evenings, weekends, and holidays.