Any thoughts on the new (6-30-16) FHA student loan rule

[Brandon Clark]

Hey BP, 

Anybody heard of the new FHA student loan rule? As of 6-30-16 I believe, you and your spouses total student loan debt will be calculated differently. Instead of using the amount that you pay a month for your student loans they will use 1% of the total amount when determining your infome to debt ratio.

I feel like this will hender a lot of people from buying homes that use FHA loans. Which means and can also hurt investors that buy and sell in that range.

I think I explained that correctly. Anybody have any thoughts?

-Brandon

[Chris Mason]

@Brandon Clark,

That 1% of balance thing is only if your payments are non-fully-amortizing. 

People that dodge paying back their student loans do indeed get kicked right in the DTI where the sun don't shine.

I hate to be the wet blanket, but if you can't afford to pay back your student loans and keep them in deferment or forbearance for as long as possible because it would wreck your monthly household budget to make amortized payments, are you really ready to take on another half million dollars in debt!?