What are the current student loan guidelines for a Kentucky FHA, VA, USDA and Fannie Mae Conventional Mortgage loan.


 

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Kentucky FHA Loan Guidelines for Student Loans:

Must be included in the borrower’s liabilities regardless of the payment type or

status. The payment amount must be either:

▪ The greater of:

· 1% of the outstanding balance on the loan or

· Monthly payment reported on the borrower’s credit report, or

▪ The servicer’s documented payment provided the payment will fully amortize

the loan over the repayment term period

 

Kentucky VA Mortgage Guidelines for Student Loans:

Deferred

A payment does not need to be included if written evidence supports that the

student loan debt will be deferred beyond 12 months of closing.

In Repayment

Include loans with payments starting within 12 months. Calculate threshold

payment as a rate of 5% of outstanding balance divided by 12 months. If credit

report payment is higher, use credit report payment. If current documentation

from student loan servicer reflects actual terms and payment for each loan,

the verified payments may be used even if less than the threshold payment

calculation.

Kentucky USDA Mortgage Guidelines For Student Loans

Fixed Payment

A permanent amortized, fixed payment is used when documentation supports fixed payment, interest and term.

Non-Fixed payment

Use 1% of the loan balance reflected on the credit report. Payment arrangements

that are deferred or non-fixed (Income Based Repayment (IBR), graduated, adjustable, interest only, etc.) may not be used.

Fannie

Loans in Repayment Period

▪ If provided, use the credit report payment

▪ If credit report is incorrect, obtain student loan documentation from the servicer

to verify the payment used for qualification

Income Driven Repayment Plan

Use the student loan documentation to verify the actual monthly payment. Borrower

may be qualified with a $0 payment if the documentation supports it.

Loans in Deferment or Forbearance

▪ A payment equal to 1% of the outstanding student loan balance (even if this

amount is lower than the actual fully amortizing payment) or

▪ A fully amortizing payment using the documented loan repayment terms

Freddie

Loans in Repayment

Use the greater of payment reported on credit report or .5% of the higher of original

or outstanding loan balance as shown on credit report.

Loans in Deferment or Forbearance

Use greater of payment reported on credit report or 1% of the higher of original or

current outstanding loan balance as shown on the credit report.

Loan Forgiveness

Payment may be excluded if file contains documentation that indicates:

▪ Monthly payment is deferred and/or in forbearance and full balance of the loan will be forgiven, canceled, discharged or will be paid if qualified for an employment-contingent repayment program and

▪ Borrower currently meets requirements for the student loan forgiveness/cancelation program

Obtain documentation from the student loan servicer to show the loan will be forgiven, canceled, discharged or that the borrower qualifies and is approved under an employment contingent repayment program that will extinguish the debt.

http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu
 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
 
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346
 


Text/call 502-905-3708
kentuckyloan@gmail.com

http://www.nmlsconsumeraccess.org/
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
 
— Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

 

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2 thoughts on “What are the current student loan guidelines for a Kentucky FHA, VA, USDA and Fannie Mae Conventional Mortgage loan.

  1. Pingback: What are the current student loan guidelines for a Kentucky FHA, VA, USDA and Fannie Mae Conventional Mortgage loan. – Louisville Kentucky Mortgage Loans

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