New Student Loan Calculation for FHA Loans

By
Real Estate Agent with Keller Williams Realty

WOW WOW WOW! I have a great edition to share for my Financing Series if you are a buyer with student loans. I have been in real estate for over a decade and this new update by the Department of Housing and Urban Development will assist with buyers pre-approvals. Having student loan debt can be a hurdle especially if you also have car loans, credit cards and other revolving credit that reports on your credit report.

According to HUD Mortgagee Letter 2021-13 published by Department of Housing and Urban Development - Regardless of the payment status, the mortgagee (the lender) must use the payment reported on the credit report or the actaul documented payment when the payment is above zero dollars - OR - 0.5 percent of the outstanding loan balance, when the monthly payment on the borrower's credit report is zero.

 

Comments (1)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello ReShawna Leaven very good helpful report about new student loan calculation for FHA loan.

Jul 08, 2021 08:49 PM