I have a question: For anyone who has bought a house, how do student loans in deferment factor into you debt-to-income ratios? I mean, if you're not paying on them, can they factor them in? How do they even show up on your credit report (I didn't get my first credit report until after my loans were in repayment). Logically speaking, seems like they shouldn't factor in...it's like them factoring in debt you will incur after buying the home (i.e. furniture, etc). But I know student loans aren't quite the same. Any insight would be helpful as, I, yes, am looking to buy a house, probably next April. (Trying to get all my ducks in a row). Also, anyone who has a home, did you go to a mortgage counselor first and talk about your debt, etc? I was thinking of doing this 8 months before, so they can analyze my credit reports and tell me what I can do to ensure approval. I'm hoping by then, I'll have all my negatives removed and I won't have to worry about that, but just in case. Thanks!
FROM POSTS ON THIS SITE...if I remember right...they are NOT held against you until they are in PAYMENT REQUIRED MODE... No payments till x years after school completion...
I believe GEORGE is correct, if they are in deferrment they aren't included in your back ratios. I began my mortgage quest last October, I had a lender pull my merged reports and give me a GFE and tell me what he thought. I then kept that merged report and spoke with several other lenders for about 2 months and didn't let them pull another one just supplied the merged report and made the amounts and accounts current. I got great advice on what I had to do, went from 540 in October to 677 in March.
I have deferred student loans. They did show up on the report but they state "deferred." They were not factored into my ratios. Hope this helps. Good luck, Shantel!
Nana, Mom & George....that's AWESOME news to me! Boy, my debt-to-income ratio will be GREAT when I get ready. Mom, I was thinking of doing the same as you. I don't want them pulling my CR killing my score. I'm renewing my lease in October and I'll probably go talk to some people in September about it and see what they say. I'm kinda bummed out though because Full Spectrum Lending doesn't do financing in NC anymore I'll get some recommendations on good mortgage companies and I'm not ruling out my bank. And thanks for the luck Nana.
For deferment, they are strict, unless you are in school (which I am) and it's automatically deferred. But they have forebearances that you can get. It doesn't show up as such on your CR and it's typically for 6 months. They are a lot more lenient with these though. I got 2 in the last 3 years. My story (which was true)...I was going through a divorce and was having a hard time making it. I got the forbearance and kept going.
Saar: Forbearance is a breeze to get! I've had both..now on automatic deferment for grad school enrollment!
