Worried your student debt will keep you from buying? There are new guidelines that may help
April 26, 2017
Fannie Mae announced that they have revised their guidelines to help serve more borrowers with student loan debt. The following policy changes are effective immediately:
Simplified approach to calculating debt-to-income (DTI) ratios for borrowers with student loan debts. Fannie Mae will now accept the student loan payment that’s listed on the credit report
Non-mortgage debts (such as credit cards, auto loans and student loans) that are being paid by someone else can now be excluded from the DTI with acceptable 12-month documentation of payments
Borrowers who have 20% equity in their home can now pay off student debts without incurring loan level pricing adjustments
For additional details, please call me or refer to Fannie Mae’s student debt fact sheet.
Please let me know If you have clients that are struggling to qualify for a home due to student debt. I work with a couple of lenders who can quickly determine if the new Fannie Mae policies will help them achieve their homeownership goals.