Student loans have been a major obstacle for many of my first-time home buyers. Fannie Mae has just announced some new solutions that will help potential buyers with existing student loan debt.
Here are the key changes:
- Student Loan Payment Calculation: Your actual monthly payments will now be counted towards your debt-to-income (DTI) ratio. This is a major change because now it takes into account if you are in a federal reduced payment plan. For example, if your monthly payments were supposed to be $600 but now are only $150 due to an income-based payment plan, only $150 will be counted towards your DTI. Prior to this, lenders were required to calculate 1% of your student loan balance towards your monthly DTI.
- Student Loan Cash-Out Refinance: Fannie Mae has lowered the cost of this program, allowing current homeowners with existing high interest student loan debt to “cash out” on the existing equity in their home to pay off their student loan. Parents participating in “Parent Plus” programs to pay off their kids’ student loans may potentially benefit from this as well.
- Debt Being Paid by Others: if you have debts being paid by someone else, for example your parents pay your monthly car note, this will no longer be included in your DTI. However to qualify, the debts have to be non-mortgaged and payments paid for at least 12 months.
Thank you, Fannie Mae! These new rules are a step in the right direction and will allow many to now qualify for a home loan. However, keep in mind that borrowers must still meet Fannie’s regular credit-score and other underwriting criteria.
Chandra Etienne, P.A., M.S.I.R.E.
Chandra Etienne is a God-fearing wife, mother and entrepreneur helping others build wealth through homeownership. With 10 years of experience in real estate, loan modifications, foreclosures and short sales. Chandra brings her wealth of knowledge to assist millennials and first-time homebuyers with the homebuying process, asset management and building credit worthiness. If you would like more information on these changes visit www.chandraetienne.com to learn more.
These are just a few of the speakers who are going to challenge you to rethink how serious you… instagram.com/p/BaMv…
We only have a few tickets left! Don't miss out on this convening of South Florida's best and… instagram.com/p/BaMb…
These speakers are ready to see you this Saturday! From government to technology, you have a… instagram.com/p/BaHJ…
While we plan to have an amazing conference this weekend, the BPN work still continues. Last… instagram.com/p/BaHE…
Black Professionals Summit bridges vital gap in professional development sfltimes.com/news/lo…
Be empowered around career professionals who understand the challenges and hurdles youtu.be/Dyu_5gUAatM…
Did y'all hear the news? sweetbuttermiami is coming to the 2017 Black Professionals Summit!… instagram.com/p/BZy_…
- Small Business Support Post Hurricane IrmaUncategorized
- New Rules Help Borrowers With Student Loan DebtHousing
- No Picket Fence or RentHousing
- Do You Suffer from “Over-Caring?”Opinion
- Myths & Misconceptions of HomebuyingHousing
- Volunteering – Just as Good for You!Pay It Forward
- Do You Have These Black Women Authors on Your Reading List?General
- Black Professionals’ Guide to Surviving South FloridaNetworking