2 responses

  1. Andrea Massey
    June 12, 2015

    I was just reading your article on the new FHA guidance on student loans. Is the same true for VA loans? Also, how does it work with loans with IBR repayment? Do they use the IBR repayment amount if it is more than $0?


    • Scott Storace
      June 12, 2015

      With FHA, Income Based Repayment(IBR) plans must be factored into the debt ratio calculations using the current payment and balance listedon the credit report. If the payment listed on the credit report is $0, then 1.5% of the balance will be used int he calculation.

      The VA does not require student loans be included as part of the debt. However, student loans must not be in forbearance and proof must be provided that payments will not begin within 12 months of closing.

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