The new policy in place with Fannie Mae allows mortgage lenders to use the monthly student loan payment provided on the borrower’s credit report to calculate the debt to income ratio. This is great news if you are involved in an income driven repayment plan (IDR). With IDR plans, you can devote as little as 10% of your discretionary income to student loans. These payments are much smaller and may not be paying the monthly accruing interest. In the past if your student loan payment was not enough to cover the interest and fully amortize the loan; it could not be accepted for purposes of calculating your debt to income ratio. Now this debt repayment number can be included in calculating your debt to income ration for your mortgage loan. Great news!



Tricia Houston

To find out how this change can affect you, give Lending Maven Mortgage a call at 303-845-2409 or contact us by email at [email protected]




For the complete Forbes article – click on title below

Fannie Mae Gives Homebuyers Struggling With Student Loan Debt A Break