How should student loan debt that is not yet in repayment be listed on a mortgage loan application?
Answers | 2
All deferred student loan debt is now required to be factored into the qualifying debt-to-income (DTI) ratios. Depending on the loan program, the minimum qualified payment is calculated based on 1% or 2% of the outstanding balance. Speak with a local mortgage professional who can give you specific guidance as it relates to you and your ability to qualify for a home loan.
1) List the balance. 2) List the payment that you will have once the deferment ends. 3) If the payment is unknown and doesn't appear on the credit report, the lender will likely use 1% of the balance for qualification purposes.