The new policy in place with Fannie Mae allows Colorado mortgage lenders and beyond 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 percent 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 the purposes of calculating your debt to income ratio. Now this debt repayment number can be included when calculating your debt to income ratio 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




For the complete Forbes article – click on title below

Fannie Mae Gives Homebuyers Struggling With Student Loan Debt A Break