Fannie Mae Announces Programs To Aid With Student Loan Debt

Dated: 05/19/2017

Views: 185

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.


Published by:

Karen & Henry Seale

http://SealeTheDeal.com

(409) 770-4076

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