FHA Student Loan Payment Guidelines for 2018: A Must-Know for Homebuyers
Are you a student loan borrower struggling to make ends meet while trying to purchase your dream home? You’re not alone. The increasing burden of student loans has left many wondering how they’ll ever be able to afford the American Dream.
In 2018, the Federal Housing Administration (FHA) released new guidelines for handling student loan payments when applying for a mortgage. These changes aim to help borrowers with high student loan debt get approved for home loans and achieve homeownership goals.
This guide will walk you through the FHA’s updated student loan payment guidelines for 2018, providing valuable insights on how these changes can positively impact your chances of securing a mortgage despite your student loan obligations.
FHA Student Loan Payment Guidelines for 2018: A Must-Know for Homebuyers
Are you a student loan borrower struggling to make ends meet while trying to purchase your dream home? You’re not alone. The increasing burden of student loans has left many wondering how they’ll ever be able to afford the American Dream.
In 2018, the Federal Housing Administration (FHA) released new guidelines for handling student loan payments when applying for a mortgage. These changes aim to help borrowers with high student loan debt get approved for home loans and achieve homeownership goals [1].
The updated guidelines consider both the total amount of outstanding student loans and the borrower’s income when determining how much they can afford to pay each month. According to the FHA, borrowers will now be able to use a longer calculation period to determine their debt-to-income (DTI) ratio, making it easier for them to qualify for a mortgage [2].
The new guidelines also take into account income-based repayment plans and consider the borrower’s potential future income growth when calculating their DTI ratio. This change is expected to benefit borrowers with high student loan debt who are able to demonstrate a stable income and a clear plan for paying off their loans.
For more information on the FHA’s student loan payment guidelines, visit their official websiteBy understanding these updated guidelines, you can better navigate the homebuying process and increase your chances of securing a mortgage despite your student loan obligations.
Struggling with Student Loan Payments?
See if You Qualify for Lower Payments & Better Rates – Speak with an Expert Now!
💬 Start Free ChatFHA Student Loan Payment Guidelines for 2018 FAQs
-
Q: What is the maximum student loan payment allowed under FHA guidelines?
A: According to FHA guidelines, the maximum student loan payment allowed is 1% of the borrower’s gross income. This payment amount does not include any payments that are deferred or in forbearance.
-
Q: How do I calculate my student loan payment under FHA guidelines?
A: To calculate your student loan payment, you can use the 1% of gross income rule. For example, if your gross income is $50,000 per year, your maximum student loan payment would be $500 per month (based on a 12-month year).
-
Q: Can I use an automated student loan payment program to meet the FHA guidelines?
A: Yes, you can use an automated student loan payment program as long as it is set up to make at least the minimum payment required each month. However, if your payments are not being applied to the principal balance of the loan, they may be considered deferred or in forbearance.
Conclusion
In conclusion, the FHA’s updated student loan payment guidelines for 2018 aim to provide more flexibility and affordability for borrowers with high student loan debt. By considering both the total amount of outstanding student loans and the borrower’s income when determining how much they can afford to pay each month, these changes are expected to benefit borrowers who have a stable income and a clear plan for paying off their loans.
Understanding these guidelines is crucial for homebuyers struggling with student loan debt. By calculating your DTI ratio using a longer calculation period and considering income-based repayment plans and potential future income growth, you can better navigate the homebuying process and increase your chances of securing a mortgage despite your student loan obligations.
Get instant approval for direct lender payday loans online: Need a quick cash fix? Learn how to get approved for payday loans online in an instant, even with poor credit. Read more to discover the secrets to hassle-free borrowing!