Hi guys, I've been told that when purchasing a home or other major purchase, student loans affect debt to income ratios differently. I owe approximately $35,000 in student loans. I am currently making about that a year (yeah, I know it sucks - I have a BSSW- Social Work) We have decided to purchase a home prolly February 2002 My husband makes enough to qualify for the loan on his own - would it be better if I just stay out of the picture. My Score is actually better than his - but I assume by then, will dilligence, I can improve his score. any suggestions? Oh and Mom, I sent that letter (Kristi's debt settlement letter) to two collection agencies - wish me luck Thanks, Kelly
Good luck Good luck Kelly, I hope they work for you that letter was written perfectly. I really don't know much about student loans, but yes it seems they would count that in as your debt obligations, you may just want to go with him, I would use both your numbers first and see where you stand and then just use his and see how that looks. There are several sites that offer mortgage caculators for you to go by.
Momof3 Momof3, Is it possible to get a copy of that letter, so that I can send it to one of my fiance's creditors?? Thanks in Advance, Reshod
RE: Student Loans and debt to Kelly, I went thru a preapproval for a mortgage just to get an idea a few months ago. I owe 100K+ in student loans. I also make less than that a year. They look mostly at your payments on the loan. Since we have a long time to pay them, it is better than say 100K in credit card debt. So yes they are factored into the debt somewhat. The monthly payment of your student loan must be within your mortgage goals range much like your car payment. Student loan payments can be lowered by calling the lender right before you try to get the mortgage. Say you are paying $300/mo now to pay them expediously. But you can call and say I want extended payment plan and they can drop to $150/mo until you qualify for a mortgage. Stay at that payment for awhile and then increase the payments as you make for or feel you can handle the mortgage. That is what I plan doing. Good Luck to you. roni.
RE: Student Loans and debt to Roni, you are not alone. I owe $80,000 for 1BS, 1MA, and 1MBA. I will certainly call to have my monthly payments lowered so that I can qualify for the house that I want.
This worked for me Enroll in a certificate program at a community college and take one class. This will qualify you for a deferment (at least half-time status) and your loans will not be considered in your debt-to-income ratio.
RE: Student Loans and debt to When I got approved with GMAC mortgage, I thought my 57,000 in student loans would be a problem (BA, MA)...nope. All they cared about was what my monthly payment was, not the total amount.
RE: Student Loans and debt to Good Minds think alike my friend. Newcomer wrote: ------------------------------- Roni, you are not alone. I owe $80,000 for 1BS, 1MA, and 1MBA. I will certainly call to have my monthly payments lowered so that I can qualify for the house that I want.
RE: This worked for me I think it is fulltime Carrot. Are you joking around again. Carrot wrote: ------------------------------- Enroll in a certificate program at a community college and take one class. This will qualify you for a deferment (at least half-time status) and your loans will not be considered in your debt-to-income ratio.
RE: This worked for me as long as you are half time, student loans can be deferred. (But that usually means 2 classes - depends on the school and program)
Serious as a Heartattack... I'm not joking! I have a BA, but enrolled in a certificate program at the local Community College. I registered for at least three credit hours each semester, and as far as William D. Ford is concerned, that's enough to qualify for a deferment. I plan to be a student until I die...
RE: Student Loans and debt to Thanks Roni, That's good news! I think I'll check out the student loan site about payment plans and such. Kelly
RE: This worked for me Hmmmm.... Looks like i could kill two birds with one stone. I can take classes for continuing education credits (licensing requirements) Ususally I go to conferences (cheaper) Dang, this sounds to good to be true. Kelly
RE: This worked for me It's true! It has to be a degree-granting program (Certificate,Associate,etc) to qualify, so I enrolled in a 12 credit child and family studies program to help raise my GPA before grad school. I took one class per semester which made me a part-time student. My employer paid for the classes, but even if they didn't the cost per class was only $111--much less than the $300 a month loan payment! When I applied for a mortgage all they needed was a letter from my lender stating that my loan was deferred and when the deferment would end. Since it was a debt that was not in repayment, they couldn't factor it into my debt-to-income ratio.
