FLORIDA MORTGAGE LENDERS USE INCOME BASED REPAY CALCULATION
Getting A Florida Mortgage While On IBR is a great question all Florida mortgage applicants have that have recently been turned down for a home loan.. There are Florida home buyers try to get a Florida mortgage while being turned down because they are on an income based repayment (IBR) plan for student loan debt.
Private Florida Mortgage With Student Loans:
Allow student loan differed for more than 1 year NOT counted as debt obligations!
Conventional Florida Mortgage With Student Loans:
DU: 1% of the outstanding balance (ONLY if fully amortized payment is unavailable)
Actual payment that is fixed and fully amortized provided by:
Credit report
Student Loan provider
Written documentation provided by the borrower
LP: 1% of outstanding balance if no payment is reported on loans deferred or in forbearance
Actual payment may be used with:
Direct verification from the creditor
Installment agreement provided by the borrower
Payment required after deferment has ended with documentation from creditor
$0.00 payment may be used with documentation from the creditor showing $0 payment
FHA Florida Mortgage With Student Loans:
Greater of 1% of outstanding balance OR payment amount showing on credit report
Fully amortized and fixed payment as documented by creditor
VA Florida Mortgage With Student Loans:
Deferred loans for more than 12 months may be excluded with documentation from creditor
Loans in repayment must use the greater of:
5% of outstanding balance divided by 12
Payment on credit report
Higher payment must be used unless documentation of lower payment if proved by creditor
florida mortgage lenders allow Student Loans
If a monthly student loan payment is provided on the credit report, the lender may use that amount for qualifying purposes. If the credit report does not reflect the correct monthly payment, the lender 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 lender must determine the qualifying monthly payment using one of the options below.
- 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.
- 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.
