Adrian Kleeschulte sticks around to help Doug and Tammie weed out the false and the facts of student loan payments and how they can affect your ability to purchase a home.
Listed below are different loan programs and their guidelines when repaying student loans:
- Conventional, USDA, Jumbo Loans
- 1% minimum payment or actual payment, whichever is higher
- FHA
- No more deferrals
- Either actual payment on credit report or 2% if no payment shown
- If payments are deferred then borrower can get a letter from Student Loan company to show the future payment amount.
- Changes effective 9/14/15
- Case # must be assigned before 9/14/15
- This means you would need it assigned by 9/11/15
- VA
- No guidance except deferred student loans are still allowed.
- Industry practice is to count 2% of balance as the payment
- Example: $30,000 in student loans
- Credit report shows income based repayment of $142/month.
- Conventional, USDA – $300/month
- FHA, VA – $142/month
- How are income based repayments calculated when qualifying someone for a loan?
- You have to be able to show that the payment won’t change for at least 12 months after closing. Typically student loan companies only give IBR for 12 months at a time. This means it will never go for 12 months after closing.
If you or someone you know has student loans and is looking for advice on purchasing a home reach out to Adrian at (314) 497-1122 or Doug at (314) 472-DOUG (3684)
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