Recent changes now makes qualifying for a mortgage with student loan debt easier, which is huge for millions for Americans! FHA has updated guidelines for student loans in deferment or income-based repayment (IBR).
Before the change, mortgage companies were required to use 1% of the loan balance to determine a borrower’s monthly student loan payment when the loan was deferred or IBR. Now, if the If the payment on the borrower's credit report reflects $0, 0.5% of the loan balance can be used to calculate the monthly payment.
In February 2021, more than 45 million borrowers collectively owe $1.7 trillion in student loan debt, which has been a barrier to homeownership.
Click here to find out what this means for you!