Do mortgage lenders treat student loan debt differently than they would other types of debt, such as auto loan debt or credit card debt? I will be applying for a mortgage at the end of the year and have about $18K outstanding owed to Sallie Mae. It's current, never been late. Do they look at this debt differently than other types of liabilities? Thanks Jim
if they are not late or in collections you should be fine. is this just one loan or do you have several? it may be a wise idea to consildate them all into one loan if they are not already.
They will look at them in terms of DTI just like any other account but other than that you should be fine provided your mid-score is sufficient to meet or exceed their particular threshold. 580 is the norm to get your foot in the door or at least it is with most brokers we work with. 700 and you can go income stated. Again, these are general rules and not applicable to every lender.
