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!