Change #1: Student loan payment calculation Fannie Mae has changed how lenders calculate student loan payments. Lenders may use the student loan payment as it appears on the credit report for qualification. Period. That may seem like common sense, but it’s not how things have been do...
If Payment is Not Fixed:When the documented payment above $0/month, use that amount. If the documented payment is $0/month (including deferred loans) all lenders must use .5% of the student loan balance for calculation in the DTI ratio. ...
Many lenders will remove the co-signed loan from the DTI calculation if you can show that the student loan borrower has been making payments independently for a while, usually 12 to 24 months. However, since many mortgage applications are initially reviewed by a computer algorithm, co-signed l...
Historically, Fannie Mae's student debt policy required lenders to use 1 percent of the loan balance — regardless of the actual payment. With interest rates still near historic lows, this refinancing option could help an estimated 8.5 million U.S. households pay down or completely pay off ...
$250 will be used instead of $350. That brings total debt along with the $1,500 mortgage payment to $2,800 and DTI to 51%. 3% more doesn’t seem like much but depending on the difference between the monthly student loan payment and the 1% calculation, it could be enough to push DT...