Fannie Mae Loan Programs and Student Debt
According to the Aspiring Home Buyers 2017 survey, 59% of non-homeowners are not comfortable taking on a mortgage if they’re still paying off outstanding student loans. It is estimated that the college graduates have an average of $37,172 in student debt.
Fannie Mae offers loan programs with downpayments as low as 3-5%. Recently, they’ve announced changes to how student loan debt is considered that could make it even easier for those with outstanding student loans to qualify for a mortgage.
For the 5 million borrowers who participate in the reduced payment plans, actual payments are now considered for calculating debt-to-income ratio rather than the total amount owed. In addition, non-mortgage debts paid by another party for at least 12 months won’t be included in calculating debt-to-income ratio. For example, payments being made on a student loan by the parents would not be counted against the DTI ratio for the student.
These changes can make it possible for would-be buyers with student debt to get a home now instead of waiting for years. Being pre-approved by a trusted mortgage professional is the best way to confirm that these changes apply to your situation. Contact Sea Scape Properties today for a recommendation of a trusted mortgage professional and for assistance in buying your next home!