Financing in Naperville>Question Details

Daniellehomes, Home Buyer in Naperville, IL

Does anyone know if student loans are required to be offered on a Fannie Mae Homepath loan?

Asked by Daniellehomes, Naperville, IL Wed Dec 12, 2012

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Terry Farnsworth’s answer
Shane is spot on as far as the approval guidelines.

Additionally, I have extensive experience with Fannie Mae properties on the contract side, and the process of submitting offers/negotiating them. I'd be happy to walk you through what to expect, how to submit an offer, or with any other related questions you might have. If you have any additional questions, please feel free to let me know.

Thanks!
Terry Farnsworth
Licensed Broker
Prospect Equities Premier
terryfarnsworth@prospectequities.com
http://www.SelectiveBuyer.com
0 votes Thank Flag Link Wed Dec 12, 2012
Not sure what you mean by "offered". But with any Fannie Mae loan, student loan payments need to be included in the debt to income ratio regardless if they are in deferment or not.

Guidelines are:

Deferred Installment Debt
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.

You can find that at https://www.fanniemae.com/singlefamily/originating-underwriting under the "Selling Guide".

Shane Milne | Lending in all 50 states | NMLS #81195
0 votes Thank Flag Link Wed Dec 12, 2012
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