Potential home buyers with student debt are going to be happy to know that Fannie Mae is expanding their mortgage options for those who are burdened by education loans. From experience, we can tell you that home buyers have been surprised by how much weight their student debt carries in determining eligibility. Even if they were approved for an income-based payments, guidelines required lenders to add to that monthly payment when calculating the debt-to-income ratio. Now, Fannie Mae is expanding its programs to widen eligibility.
The first option helps people who want to refinance their home to a lower interest rate while also paying off high interest rate student loans. The second option allows debt that’s paid by someone else to be excluded from the debt-to-income ratio. Finally, the third option allows lenders to accept the student loan payment on the credit report, rather than calculating one determined by past guidelines.
HousingWire has all the details. Read the Original Article Here: Parents, here’s how Fannie Mae’s new student debt relief programs will work for you
If you’d like to be put in touch with a reputable lender, give us a call or send us a message through our contact page. If you’ve been determined unqualified to buy in the past due to student loans, now may be the time to give it another go.
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