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 episode to learn more.
Find this episode and more, even video format at the links below
Thank you for watching and listening!