FHA Loan and In-School forbearance

3 Replies

Good Evening All!

Forgive me if this is the wrong spot for this question.

My question is as follows. I am just starting my MBA program and I was wondering if my program last about 3 years, will the student loan be still counted against my DTI for a FHA loan?

Thanks in advance!

@Ryan Cannedy

If the payments are deferred for at least 12 months from the loan being finished, then the underwriter doesn't have to include the payments in your DTI. From the FHA handbook:

Debt payments such as a student loan or balloon note scheduled to begin or come due within 12 months of the mortgage loan closing must be included by the lender as anticipated monthly obligations during the underwriting analysis. Debt payments do not have to be classified as projected obligations if the borrower provides written evidence that the debt will be deferred to a period outside the 12-month timeframe.

Hope this helps!

@Ryan Cannedy

You may just have to call and get the deferment extended, as they normally only do it 12 months from the original date and FHA requires 12 months from the date of closing. 1 phone call usually gets it done

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