Mortgage loan

Discussion in 'Credit Talk' started by Newcomer, Jan 6, 2001.

  1. Newcomer

    Newcomer Well-Known Member

    I have a student loan that is in forbearance (an interest accruing deferrment) because I am trying to qualify for a mortgage loan. Once it goes into repayment, I will go into a reduced payment forbearance, which means I'll pay a fraction of what my payment really is until I can pay off my car loan. My mortgage loan officer tells me that it will not be a problem getting me approved, but I was just wondering if any of you know anything about this. The credit bureaus report the payment amount, but that it is in deferrment. But the deferrment period ends this summer, which is when I can set up the reduced payment. Will the underwriters take my word for it or will I have to come up with some kind of verification?
  2. MikeB

    MikeB Banned

    As long as you don't have any history of late payments or defaults, then you should be fine. I am too in the process of preapplying for a loan. I asked for a temp. reduced payment forbearance to also get my major debts paid off. My forbearance shows my loans as being current with zero past due, but the credit bureaus have not updated this info. yet. I just paid my first due payment, so my account is now current. You will have to take care of any past dues on any Federal loan to get approved by FHA. I suspect most lenders would require this as well. I would have a good excuse ready just in case! Good Luck
  3. the other

    the other Well-Known Member

    I was told by my mortgage lender that I needed a letter stating that my student loans were in deferrment and when the deferment ended.

    I think FHA requires it to be in deferment for 2 years after you get the mortgage. (But I didn't go FHA, so I'm not sure)
  4. David W

    David W Guest

    I believe student loans must have deferments of more than 6 months or they are counted in monthly liability, commonly referred to as DTI or Front/Back ratios.

    David W
  5. Newcomer

    Newcomer Well-Known Member

    Thank you. I got the late date taken off of Equifax, but experian and TU are dragging their feet. Of course, I did get a letter from the US Dept of Ed saying that they would remove the delinquency, so the lender is holding on to that for now. Good luck with your mortgage. I ran the numbers on what I would save in taxes by purchasing and I could kick myself for renting THIS long:)

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