Regardless of the payment status, the FHA Mortgage Lenders must use either:
- the greater of:
- 1 percent of the outstanding balance on the loan; or
- the monthly payment reported on the Borrower’s credit report; or
- the actual documented payment provided the payment will fully amortize the loan over its term.
If the payment used for the monthly obligation is:
- less than 1 percent of the outstanding balance reported on the Borrower’s credit report, and
- less than the monthly payment reported on the Borrower’s credit report;
the FHA Mortgage Lenders must obtain written documentation of the actual monthly payment, the payment status, and evidence of the outstanding balance and terms from the creditor.
How do fannie mae Mortgage Lenders determine the monthly payment on a student loan?
If a monthly student loan payment is provided on the credit report, Fannie Mae mortgage lenders may use that amount for qualifying purposes. If the credit report does not reflect the correct monthly payment, the Fannie Mae mortgage lenders may use the monthly payment that is on the student loan documentation (the most recent student loan statement) to qualify the borrower.
If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the Fannie Mae mortgage lenders must determine the qualifying monthly payment using one of the options below.
- For deferred loans or loans in forbearance, the lender may calculate
- a payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), or
- a fully amortizing payment using the documented loan repayment terms.
- If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment.
