Did FHA’s New Rule On Student Loans Give Borrowers $40k More In Borrowing Power?

by Tim Hart | Jun 24, 2021 12:18:17 PM

Our industry was pleasantly surprised to see FHA change their stance on deferred student loans.

This rule change will allow many borrowers that have student loans to now qualify or qualify for more.

In the past FHA has made us use 1% of the loan balance as an estimated monthly payment for qualification purposes.

They have decreased that to .5%.  It does not seem like much but on average it will be around $40k in borrowing power.

Check out this video to learn more.


This means that if you are looking for a mortgage and you have student loan debt, you may qualify for more than thought.

If you were Pre- Approved before this change ask your lender about these changes and to  re calculate your sales price!

If you would like a second opinion on a Pre- Approval, or to learn more about qualifying with student loans be sure to give us a call!

I do Mortgages for a living, if I can ever help you buy or refinance a home let me know!



Born and raised in Southwest Florida, I have been in the Mortgage business since 2001 I'm a grizzly, battle tested mortgage veteran. I am also the Host of Rates & Reels, which is the most popular fishing show in Southwest Florida, hosted by a guy named Tim. In my spare time I love spending time with my family, coaching baseball, and anything else my kids or wife want me to do. I would be happy to help you or someone you know with any of your Mortgage needs.

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