So you’ve made an offer on your dream home, and the seller has accepted…what are the next steps?Several things still need to happen before the deal can close, and the house can officially become
Fannie Mae Announces Programs To Aid With Student Loan Debt
When applying for a home mortgage, almost every aspect of the applicant’s financial life is analyzed – one of those being debt. Unfortunately, applicants with student loan debt are often rejected from being able to obtain a home mortgage loan due to their debt-to-income ratio. Recently, 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.
The new policies include:
Student Loan Cash-Out Finance – By providing the borrower with extra cash, this option will provide current homeowners with the opportunity to pay off student debt while refinancing to a lower mortgage interest rate.
Debt Paid by Others – This option will increase the borrower’s eligibility by eliminating non-mortgage debt (e.g., credit cards, auto loan, student loan) that is paid by someone other than the borrower.
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.
Karen & Henry Seale
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