Is you income likely to increase substantially over the next few years? If not - weigh out the costs and future impact on the growing student loan debt. Be wise not too eager to pile on more debt for the future. STOP THE INTEREST - PAY OFF THE DEBT, THEN BUY A HOME. This will bring peace of mind and joy when you are ready financially to buy your home. I am a licensed Realtor and a licensed Mortgage Broker. This is the advise I would give my daughter and sons.
I think our only options are:
1. to try and qualify with the payment included (I think it will make our debt to income too high though),
2. Get the bank to grant an exception.
3. The student loan company offered a solution of having a conference call where I give them verbal permission to speak directly with the bank and the student loan company will let the bank know that I still have 4 years (after the "year" they gave me) of forbearances left. Stafford loans (the type I got) have an automatic 5 years of forbearances that you are granted but you have to apply every year. The student loan company says they have done that before with other lenders and it has worked. So that is still a possibility as well.
They are doing, I assume either an FHA or Conventional loan that is sold on the secondary market and that's what the rules are.
They are banking on next year that the payment forbearance does not get extended and you will have to pay and no be able to qualify for the mortgage.
Get creative. Have the seller pay points to get your rate down so that you will qualify with the payment (if you can).