It’s not surprising that moving home is one of the most stressful life events. All that organizing, packing, sorting and sometimes even new schools and jobs; there’s a lot going on! It’s
Borrowers With Student Loan Debt Can Qualify For Home Loan
Fannie Mae announced new policies that aim to help potential borrowers with student loan debt qualify for a home loan and combat the negative effect that student loan debt has had on the housing market. What does this mean for your buyers? As you know, applicants with student loan debt are often rejected from being able to obtain a home mortgage loan due to their debt-to-income ratio. Read more about this news on my website, but two big changes are:
Student Debt Payment Calculation – This option allows lenders to view and consider student loan payment information on credit reports. By allowing this, it makes borrowers with student loan debt more likely to qualify for a loan because their situation can be analyzed in its entirety.
Debt Paid by Others – This option will increase the borrower’s eligibility by eliminating non-mortgage debt (e.g., credit cards, auto loan and/or student loan) that is paid by someone other than the borrower.
Do you have someone looking to buy their first home and student debt was their roadblock? I would be happy to talk with them about how they can afford to buy!