Financing in 94585>Question Details

R O, Home Buyer in 94585

I just got turned down for my student loans :(. They're not in repayment til 4/2017. I wanted to refinance my fha -> conventional. Anyway to bypass?

Asked by R O, 94585 Fri Jun 14, 2013

I just got turned down for my pending student loans. They're not in repayment til 4/2017. I wanted to refinance my fha into conventional. Is there any bank that would accept me despite my student loans?

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R Ojeh,

Here is the specific conforming guideline, so this will apply to those lenders who would offer you the best terms on fixed rate loans, for example:

"Deferred installment debts, such as deferred student loans, must be included as part of the borrower’s recurring monthly debt obligations. If the borrower’s credit report does not indicate the monthly amount that will be payable at the end of the deferment period, the lender must obtain copies of the borrower’s payment letters or forbearance agreements so that a monthly payment amount can be determined and used in calculating the borrower’s total monthly obligations.

Exception: For a student loan, in lieu of obtaining copies of payment letters or forbearance agreements, the lender can calculate a monthly payment using no less than 2% of the outstanding balance as the borrower's recurring monthly debt obligation. However, if any documentation is provided by the borrower or obtained by the lender that indicates the actual monthly payment, that figure must be used in qualifying the borrower."

Just be certain that your current lender measured you by this standard. Let me know if you have any questions.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Fri Jun 14, 2013
Hi Ojeh,

Do yu know what is your DTI, without student loans and with student loans?

Based on your answer may be I can hlep.

Thanks
Jacob
NMLS 327084
0 votes Thank Flag Link Fri Jun 14, 2013
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