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Hi from Just Answer. I'm PDtax, and can assist.
Income based repayment (IBR) is supposed to get different treatment for loans closing after September 14, 2015. Depending on the type of loan you are applying for, the back student loan debt may have to be included in your monthly debt to income ratio. The good news is you might still qualify, since certain loans use a 2% student loan debt service for the income portion of the math.
And, as you have seen, some use a 1% payment mandate, which would account for your $1800 per month allowance for student loans.
Resolving the issue will require working with the lender, and a letter outlining your repayment plan for your student loans might just do the trick. The key will be getting your student loan lender to commit to a repayment plan in writing, which the mortgage lender can use to support your application.
Your lender holds the keys here. Your type of mortgage will dictate. The student loan is not an immediate 'red flag' like it once was, but the odds are better if you are negotiating with a local lender or credit union that will retain your mortgage, and thus have more flexibility when it comes to approvals.
Thanks for asking at Just Answer. Positive feedback is appreciated. I'm PDtax.
PDTax is correct. The new regulation really depends on the type of mortgage you are applying for.
A huge benefit in regards ***** ***** student loan payments will go away on 9/14/2015. This was originally to happen 6/15/15 but it had been delayed.
For case files assigned prior to this date, borrowers that have student loan payments which are deferred great than 1 year after the closing date do not have to count any payments in their debt ratio.
On 9/14/15, this all changes and this will make qualifying for a mortgage loan tougher.
There is no indication that this will be delayed again.