Financing in 81501>Question Details

Shane Sinski, Home Buyer in Colorado

Can I use this against a Underwriter?? VA loan & deferments

Asked by Shane Sinski, Colorado Tue Dec 4, 2012

VA Guidelines Chapter 4 section 5 reads:
If student loan repayments are scheduled to begin within 12 months of the date of VA loan closing, lenders should consider the anticipated monthly obligation in the loan analysis. If the borrower is able to provide evidence that the debt may be deferred for a period outside that timeframe, the debt need not be considered in the analysis.

lending agent tells me "i must have documentation from nelnet stating i will be approved for my deferment next year." I am already deffered for next 11 months and based on my income for this year I will be eligible again.

WTF seriously wouldnt my paystubs which show my income for this year 2012 which i will submit for 2013 be enough evidence based on the fact the income based loan im on clearly states if you make less then the loan balance each year you are required to make no payments. my income for this year is clearly below making me eligible again next year.

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First, I'm not a lender and I suggest you talk to more than one. Second, I have to agree with Sean. If you make so little, how are you going to pay both student loans AND a mortgage?!

But I totally understand you wanting to buy a home. It's the American Dream.

So here's my take on this. Go back and re-read your documentation carefully. Here's what I'm getting from it. First sentence is pretty clear..."If student loan repayments are scheduled to begin WITHIN 12 months of the date of VA loan closing, LENDERS SHOULD CONSIDER THE MONTHLY OBLIGATION.." (So right now, sounds like you really only have documentation showing deferrment for the next 11 months). BUT THEN it says...."IF borrower is able to provide evidence that the debt MAY be deferred for a period outside that timeframe, the debt need not be considered in the analysis". Just because you have paystubs for this year doesn't necessarily mean you WILL get another deferrement next year, right? The key word here is "MAY". I'm guessing the lender doesn't want to take the risk that you MAY or MAY NOT have this debt deferred.

Think about it. Would you want to loan hundreds of thousands of dollars to somebody who MAY or MAY NOT be able to pay you back? Just my two cents. Again, I'm not a lender, but it might be worth getting a couple of opinions. Good luck to you!
0 votes Thank Flag Link Wed Dec 5, 2012
I guess I don't fully understand. Sounds like you make less than you owe for student loans. If this is the case, how can you even think that you qualify for a home loan? I'm thinking you don't.

Additionally, if you make that little, maybe you should consider paying your student loans before you decide to try to buy a home.
0 votes Thank Flag Link Tue Dec 4, 2012
how bout by buying a home i'll be saving $200 mininum vs rent & expenses. I have over 2 years of being a good renter so getting a home would benefit me in making payments towards others bills, Bills i actually dont have cause i got no debt other the student loan.

your statement would make sense if it for someone who didnt have their crap straight. in my case its just a lender who wants to include my student loan into my debt ratio to apparently deny me the loan, even though according to the guidelines I seems that it doesnt need to be added since we both know the deferment will be granted a second time thus longer then 12 months.
Flag Tue Dec 4, 2012
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