Student Loans Solutions...

By Oscar Busch

Mortgage and Lending with Brand Lending Company NMLS# 1326698

April 25, 2017 01:57 PM

STUDENT LOAN SOLUTIONS

Effective Immediatlty - April 25, 2017

New guidelines for Student Loan Payment Calculation

The monthly payment reporting on the credit report can now be used in qualifying.
If no monthly payment is provided on the credit report, use 1% of the outstanding balance of student loan or a calculated payment that will fully amortize the loan based on documented loan repayment terms.

Debts Paid by Others

Requirements for excluding non-mortgage debts (including installment loans, student loans) from the DTI ratio have changed. If the non-mortgage debt has been satisfactorily paid by another party* for the past 12 months, the debt can be excluded from the DTI. This applies regardless of whether the other party is obligated on the debt. This includes STUDENT LOANS – so if parents or employer, for example, have been paying these loans satisfactorily for the past 12 months we do not need to count in qualifying DTI!

*Other party cannot be an interested party to the transaction such as the seller or realtor.

Student Loan Cash out Refinance

Fannie Mae will now allow the payment in full of one or more student loans as a cash out refinance without the loan level pricing hit for a cash out. Cash out refinance LTV requirements apply.

Questions, please contact me at any time.

Thank you,

Oscar