Question about student loans and mortgage finance.

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Submitted by mike92104 on August 27, 2008 - 2:37pm

Probably a dumb question, but is student loan debt given any special consideration regarding a mortgage application? Is it affected by whether ou have begun the payoff or not? I am planning on buying a house in the next couple years, but I am also considering going back to school. I don't want to possibly jeopardize my financing with a student loan.

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Student loan debt is given
Submitted by Raybyrnes on August 27, 2008 - 10:36pm.

Student loan debt is given consideration. Couple things to rememeber. First you ahve the option of electind an interest only payment. This is important if you consolidated your loans becasue it will help with your debt to income ratios.

Second you can get a letter form your lender or servicing agent showing that you have the ability to defer or forbear your loans. This allows you to postpone payments for up to 6 years. Difffernt banks may view this differently so you will need to speak with your lender.

Additioally you may want to google the Student loan Common Manual and copy the section out regarding student loan deferrment and forebearance adn send this along to the underwriter. The bottom line is that it helps him identify the fact that if you lost your job or n eed to halt payment on your loan you can.

Hope this helps .