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Fannie Mae Simplifies Guidelines for Student Loan Debt
Fannie Mae Simplifies Guidelines for Student Loan Debt It's been a long time coming, but Borrowers that hold Student Loan Debt may have finally caught a break ... Made effective on April 25, 2017, Fannie Mae gave Mortgage Lenders a much more definitive process with which to calculate Student Loan Debt ... a simplification that was definitely needed and long waited for. Until this change, it had been a real challenge for Mortgage Lenders to compute the actual Student Loan Debt of a potential Borrower. Why? Not all Student Loans get repaid in the same way. Nor do all Student Loan Services report Student Loan Debt the same way to the Credit Bureaus. The waters were pretty muddy for Lenders as to how to use the info available, (if it was available at all). This new change by Fannie Mae addresses the Debt-to-Income - Qualifying (DTI) ratio calculations used by Mortgage Lenders while considering Student Loan Debt. The new simplification states: Mortgage Lenders can now accept the Student Loan Debt payment amount listed on a Credit Report. If the Student Loan Debt does not appear on the Credit Report, Mortgage Lenders can use 1% of the outstanding debt ... or ... a manually calculated, fully amortizing payment. While ... more
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