Thursday, September 11, 2014

Kentucky VA Mortgage Guidelines on Deferred Student Loans


Debt payments such as a student loan or balloon note scheduled to begin or due within 12 months of the mortgage loan closing must be included by the lender as anticipated monthly obligations during the underwriting analysis of a Kentucky VA Mortgage loan when it comes to debt to income ratios and residual income.

Debt payments do not have to be classified as projected obligations if the borrower provides written evidence that the debt will be deferred to a period outside the 12-month timeframe.

Student Loans under an Income Based Repayment plan are acceptable, however $0.00 payments are not acceptable and loan will be subject to a minimum payment of 2% of the outstanding balance. If the payments on the credit report reflect the correct payments you may use the credit report payments in qualifying DTI, if the credit report payments are incorrect, direct Verification from the creditor of the monthly loan payment and the loans included in the plan/payment must be obtained by the borrower


Joel Lobb
Senior  Loan Officer

800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

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

 Company ID #1364 | MB73346