Student loans not in repayment or in deferral included in a mortgage loan application as an expense?
Dec.23, 2008 in
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Am applying for a mortgage loan and have two school loans already on my credit report but specify one is not in repayment and second is deferred. However, the loan application is requesting all expenses listed on my credit report. Are these loans not in repayment included in my expense ratio?
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December 26th, 2008 at 3:12 am
Yes, because it is a bill that is owed, even if you are not currently paying it.
December 29th, 2008 at 7:43 am
I bought a house a few years ago and was still in school. They took an estimate of when I would start having to repay the loans, at the time it was about 2 years from the start of the mortgage. So, no they did not add it in to my current expense ration. I would say if the loans will be due in the current future, less than a year, then they would.
December 30th, 2008 at 5:43 pm
Student loans that are deferred…need to be deferred for 3yrs in order to take it out of the expense ratio.
If not, I WOULD HIGHLY recommend that you find the original contract of the student loan. OTHERWISE, the underwriter will use his own calculations of what you will pay…which is USUALLY higher than you will normally pay.
January 2nd, 2009 at 4:43 pm
I am not sure why you are not repaying it, but it is still due before your mortgage will be, which is usually in 30 years.
January 5th, 2009 at 7:22 pm
Ana they are included in your overall financial picture and debt ratio’s.