Changes to FHA Loan Programs For Student Debt
Changes to FHA Loan Programs For Those With Student Debt
If you are one of the 40 million Americans with deferred student loan debt who is thinking about buying a home soon, the following changes to FHA loan programs will impact you greatly!
Currently, if you apply for an FHA Loan and have a student loan that has been deferred 12 months or longer, lenders do not need to account for the liability when qualifying your mortgage.
Starting Sept. 14, 2015, FHA loan programs will no longer exclude deferred student loan debt. Lenders will also be required to factor in a percentage between 2-5% of the outstanding balance. This is done to establish a monthly payment to be calculated into the borrower’s debt-to-income ratio.
So what does this mean for you as a borrower?
It means qualifying for a home loan will become more challenging for those carrying deferred student loans after Sept. 14, 2015. Furthermore, home loans are likely to be less favorable to those with student loans.
If you or someone you know is thinking about buying a home, don’t wait! Call Minteer Real Estate Team at 817-481-8890 to talk to our team about your home buying needs and check out our preferred vendor list for our preferred lenders. Our highly skilled agents are waiting to help you!