Monday, June 16, 2014

Kentucky Fannie Mae and Freddie Mac Conventional mortgage loan guidelines for student loans


 Deferred installment debt, such as student loans, must be included as part of the borrower's recurring monthly debt obligations.  For student loans, in lieu of obtaining copies of payment letters or forbearance agreements, the lender can calculate a month payment using no less than 2% of the outstanding balance.  However, if any documentation is provided by the borrower that indicates the actual monthly payment, that figure must be used to qualify the borrower.
 Any outstanding debt must be including in DTI.  In many cases, providing the payment information will benefit the borrower instead of allowing the 2% of the loan amount to be used for payment calculations.  The credit report can be used as verification of payments.