Revised Guide for Student Loan Obligations:.
Student Loan Obligations mortgage rules
Student Loans in normal repayment
status
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|||
Fannie Mae
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Freddie Mac
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FHA TOTAL SCORECARD/MANUAL
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VA
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payment amount provided on the credit report
If the credit report does not identify a
payment amount or reflects $0 use either
Calculated payment that fully amortizes the loan based upon documentation
of loan repayment terms.
|
Use the payment indicated on the credit
report
IF no monthly payment is reported on the
credit report or no documentation in the credit file verifying the monthly
payment, 1% of the outstanding loan balance is monthly amount for qualifying purposes.
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Payment used is:
the greater of
·
1% x the outstanding balance, or
·
The monthly payment on the credit report
OR actual documented payment, provided the payment fully amortizes the loan over term. Obtain written documentation of actual monthly payment, the payment status, and outstanding balance and
terms from the creditor.
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Greater of credit
report payment or
5% x balance/12,
unless you can
prove the credit
report payment is the actual loan terms (fully amort.
pmt).
Proof must come
from student loan servicer and be no more than 60 days
old.
|
Student Loans in Deferred or
Forbearance Status
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Fannie Mae
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Freddie Mac
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FHA TOTAL SCORECARD/MANUAL
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VA
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Same as above
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Same as above
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Same as above
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No payment required if deferment period is
at least 12 months beyond date of closing.
If less than 12 months left of deferment calculate using
greater of credit report payment or
5% x balance/12, unless you can prove the credit report
payment is the actual loan terms (fully amort. pmt).
Proof must come from student loan servicer and be no more
than 60 days old.
|
Student Loans under Income Based
Repayment Plans
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|||
Fannie Mae
|
Freddie Mac
|
FHA TOTAL SCORECARD/MANUAL
|
VA
|
Same as above
|
Same as above
|
Same as above
|
Greater of credit report payment
or
5% x balance/12,
unless you can prove the credit
report payment is the actual loan terms (fully amort.
pmt).
Proof must come from student loan servicer and be no more
than 60 days old.
|
Excluding Debts Paid by Others – Other party isn't obligated on the debt. Non-mortgage debt if paid by another party
for 12 months can be excluded from the borrower’s debt to income ratios Need: most recent
12 months’ cancelled checks (or bank statements) from the other party documenting
a 12–month satisfactory payment history. No delinquent payments
for that debt in order to exclude it from the borrower’s debt-to-income
ratio. Other party cannot be a party to the transaction. Non-mortgage
debts include installment, revolving, lease payments, alimony, and child support.
Cash out refinance paying off off student loan(s) loan level price adjustment for out refinance transactions waived when all requirements have been met. At least 1 student loan must be paid off. Loan proceeds
must be paid directly to student loan servicer. Lesser of 2% of
$2000 cash back over and above the student loan payoff.
Properties Listed for Sale – Fannie Mae eliminating
the eligibility restriction for cash out refinances when the subject property
was listed in the past 6 months. Property must be taken off the market on or
before the disbursement date of the new mortgage.
Expiration of PERS – Final Project Approvals for
streamline PERS submissions will be issued up to 24 months at Fannie’s
discretion. Currently the term is 18 months.
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https://carolinegerardo.eaglehm.com/
949 784- 9699 cell
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