Posts tagged student loans
Student Loan Debt Flyer

Cherry Creek Mortgage Co., Inc., NMLS #3001. Debt consolidation does not pay off the debt, please consult a financial advisor regarding the effect of consolidating short term debt into long-term debt.

This material is informational only and not an advertisement to extend credit as defined by TILA/Regulation Z nor an application for credit as defined by RESPA/Regulation X. All applications are

subject to underwriting approval and determining applicant’s ability to repay. Not all applicants are eligible for or qualify for all loan products offered. All loan programs, terms and conditions are

subject to change without notice. Rates and terms are valid as of the date of printing/distribution.

Call me. Let’s talk about whether you

could benefit by refinancing now!

The broad burden of student loan debt.

Student loan debt impacts 44 million people in the United States and 41% report that they are delaying homeownership

because they find it difficult to qualify for a mortgage due to the impact of these loans on their debt-to-income ratios.

Help is on the way for homebuyers with student loan debt.

We are excited to announce that Fannie Mae is making it easier for home buyers with student loan debt to purchase or

refinance a home by implementing the following guideline changes:

• Changes to how debt-to-income ratios are calculated for borrowers with student loans

• Expanded guidelines that allow borrowers to pay off student loans without the typical rate increase that’s

required for cash out transactions

• Exclusion of student loan payments from debt-to-income ratio calculations when a borrower can verify those

payments are made by a family member with 12 month’s canceled checks

Now is a great time to connect with your clients who have been impacted by student loan debt to let them know

Fannie Mae is making changes to help them! Reach out to me today to learn more about how your buyers can benefit

from these new guidelines.

Help is on the way...

FOR BORROWERS WITH STUDENT LOAN DEBT

Read More
Student Loan Hurts You From Qualifying

Will your STUDENT

LOANS hurt your

chances o f qualif ying

for a mortgage loan?

Outstanding student loan debt

Monthly payment

on credit report

FHA

LOAN

FANNIE

MAE LOAN

Student loan payment

used for qualification

$2,380*

$5,535 Additional monthly income needed

Student loan payment

used for qualification

$26

$61 Additional monthly income needed

1% of the outstanding loan

Current monthly payment

Cherry Creek Mortgage Co., Inc. NMLS #3001. This material is informational only and not an advertisement to extend credit as defined by TILA/Regulation Z nor an application for credit as defined by

programs, terms and conditions are subject to change without notice. Rates and terms are valid as of the date of printing/distribution.

*FHA requires lenders to use either the documented, fully amortized payment OR the greater of either the amount showing on the credit report or 1% of the outstanding balance.

**Assumes maximum debt to income ratio of 43%. Actual required debt to income ratio will vary by program selected.

.

If you have student loans and want to learn more about how those debts will impact your ability to qualify for a mortgage,

reach out to me today! I'll be happy to review your credit history, income, and housing needs, and I'll help you select the

right mortgage program for your unique circumstances.

CREDIT REPORT INFO

$238

$26

You worked hard to achieve your educational goals, but if you’re

like most individuals, you’re still paying for that degree with

monthly student loan payments. If you’re in the market to

purchase a home, your student loan debt can impact whether or

not you qualify for a mortgage loan, and it will dictate the loan

amount for which you qualify.

Mortgage programs can have vastly dierent rules about how

student loan debts are calculated, so it is important to work with

a lender who has access to a broad range of mortgage programs.

Check out the following example of how student loan debt

payments - and their impact on how much income is needed to

qualify - can change

from one program to the next....

As you can see, Fannie Mae makes it easier for home buyers with student loan debt to qualify for a mortgage by oering more

flexible guidelines around how student loan payments are calculated. Fannie Mae has also implemented additional helpful

rules around student loan debt that allow:

Borrowers to pay o student loans without the typical rate increase that’s required for cash out refinance transactions.

Student loan payments to be excluded from debt-to-income ratio calculations when a borrower can verify those payments

are made by a family member with 12 month’s canceled checks.

Read More