Monday, June 16, 2014

What is the rule with student loans and qualifying for a Kentucky VA Mortgage Loan?

Kentucky VA Mortgage Guidelines for student loans:

 


The Rule:  If student loan repayment is scheduled to begin within 12 months of the date of VA closing, lenders should consider the anticipated monthly obligation in the loan analysis.  If the borrower is able to provide evidence that the debt may be deferred for a period of time outside that time frame, the debt need not be considered in the analysis.
 
The Requirements:  Similar to FHA, the file must be documented to show that the student loans are deferred 12 months or more from the date of closing.  If they are not, payments must be documented on the credit report or terms of loans provided from the servicer.  Any loans not showing a payment on the credit but are not deferred 12+ months will be required to have a payment included in the DTI.
 

 



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Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346