If you saw my tweet of the week then you know that, the Federal Housing Administration (FHA) updated their student loan payment requirement policy for mortgages! Prior to Thursday, FHA lenders would consider one percent of your student loan balance as your monthly payment.
So for example, if you chose a college major that required you to get a masters degree and now you have an outstanding student loan balance of $100K, FHA lenders would use $1,000 (1%) as your monthly payment for your student loan which in turn gave you a higher DTI (debt to income ratio) thus qualifying you for less house. NOW and effective immediately the FHA will consider your actual monthly payment which almost always is significantly less than 1% of your balance.
All in all this is definitely a game changer! So if you previously were unqualified to buy or given a less than ideal budget for a FHA backed loan due to high student loans assuming you meet all other requirements you are now eligible. Contact me today and I will introduce you to some of my preferred lenders so they can help me get you YOUR OWN KEYS!
Read the full press release here
Tony Stanford, Realtor®️
EZ Realty Group