How to qualify for a home loan with student loan debt.
If you are trying to purchase a home and you have a significant amount of student loan debt this could be a problem qualifying for the home you want. Current FHA guidelines require that lenders use 1% of your current student loan debt as your monthly payment or a documented fully amortized payment schedule. So for instance if you have a $50,000 student loan debt, lenders would have to use $500 as your monthly payment. For FHA transactions this can put many homebuyers out of the market.
The Richard Woodward Mortgage Team of Service First Mortgage has other loan options that may help you to purchase the perfect home. We even have access to other resources that could help to reduce your monthly payments on your student loan debt or to be able to exclude them completely in the case of married couples when the spouse with the student loan debt is not on the loan. In community property states like Texas, whenever a married couple is applying for a government backed loan, most lenders require the debt of the non-borrowing spouse be included in the total monthly debt.
Ultimately our goal is to assist you in buying the right size home to fit your needs. If you would like The Richard Woodward Mortgage Team to review your file you can start the process online right now by applying here or just give us a call at 214-945-1066. We want to help you become a home owner.