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
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