Still no longer stopping someone from qualifying for a mortgage

4 Replies

Hi, I know someone who is interested in buying a home but says that her student loan debt is affecting the process. I am aware of the key factors the debt to income ratio plays in getting a mortgage is there anything that she can do to still qualify while having high student loan debt?

@Previous Thompson You can ask your client to get a statement from lender to show what will be actual payment for DTI purpose. Most of the time it resolve this issue. Look into IDR payment which can lower the DTI. I don't know the loan scenario some of cases mortgage under Freddie Mac is good option to calculate the student loan debt.

Look at her other debt payments. Does she have a car loan?  Can she refinance or sell the car? Really increasing income or lowering monthly payments is the only way to lower dti.

@Precious Thompson what type of payment plan is she on? If she’s on the standard 10-year repayment then she can see if she qualifies for an income based repayment plan. This will lower her monthly obligation in order to allow her to qualify but she can still choose to pay her normal amount if she wants to pay it off faster.