Student Loans and FHA Debt to Income Ratio
February 27, 2008 11:35 AM Subscribe
Does a student loan in deferment count as debt for the purposes of figuring debt to income ratios in an FHA loan?
We're looking at applying for an FHA home loan. I had a lender tell me that my student loans, currently in deferment until graduation in May, then in grace period for six months after that, would be counted against my debt to income ratio now.
The lender says that in order to not have them counted against my debt to income ratio right now, I would have to provide documentation from the student loan lender that they would be deferred from one year of closing date of the mortgage. At best, I think I could only document the current deferment and subsequent grace period (six months after I graduate). As to applying for a forbearance, I don't think I can apply for that until I'm actually in repayment and even at that most lenders, apparently, only grant forbearances for 6 months at a time. It seems weird to count this as debt now, especially since my future income from my full time job which will kick in the future won't be counted.
Is this one-year deferment doc requirement a lender-specific thing or a HUD thing?
Anybody have experience doing this?