New Student Loan Rules Big Obstacle For FirstHomeBuyers
There are some new rules on student loan debt which could hamper your ability to buy a home. New FHA guidelines count student loans payments even if they are in deferment and if you can't document the proposed payment when the loans come due FHA will use 2% of the balance. For example, if you have $50,000 of student loan debt and you can't provide a statement with payment then lenders will use 2% or $1,000 per month as projected payment to qualify you for the program which could cripple your ability to purchase a home. USDA and conventional guidelines dictate 1% of balance to used as payment. There is one exception: If you are applying for a VA loan then you don't need to count the payment if your student loans are deferred for a year or more from the closing date on your home. You must take action and try to consolidate your loans into one loan payment 3 to 6 months prior to applying for a mortgage and get documentation showing the payment to increase your chances of getting approved for a loan for a house in your desired price range. You can contact our team at 847-516-5743 to discuss your student loan situation and what loan options are available to you. Also, you can fill out the at preliminary preapproval form and a loan representive will contact you right away.