Significant Changes for Buyers with Student Loans
For so long, potential first-time home buyers have had concerns about student loans debt and getting a mortgage to buy a home. But there’s good news. Changes in student loan calculations may create more opportunities for people who didn’t think they would qualify for a home loan. Let’s look at a few of the details.
FHA Changes
The Federal Housing Administration, or FHA, has changed how student loan payments are counted to determine eligibility for federally insured mortgages. That means, in short, if you think you can’t buy a home because of looming student loan debt, call us to talk about your options first.
The change is helpful for any student loan borrower with an income-based repayment plan. It also affects those whose student loans are approved for deferment or forbearance. Or, if your loan isn’t fully amortizing, you may qualify under these new guidelines.
Loan Calculations
This change is huge for homebuyers with student loan debt because of how the loans will be calculated moving forward. Previously, lenders like us were required to count 1% of the outstanding student loan balance toward monthly debt payments. While that doesn’t look like a lot, it can be a considerable number depending on outstanding debt.
Now, the amount has been cut in half, and in some cases, even more. With this new calculation, we may be able to find FHA loans that you previously didn’t qualify for or would have been far too costly.
How to Get Started
This next step is easy. Get started by calling the team at GoPrime Mortgage in West Asheville – 828 348-1907. With these new guidelines, you or someone you know who previously could not finance a home purchase due to high student loan debt will have a better chance of trying again.
We want you to get into your first home in the Asheville area, so call us to find out how we can work with you. We can run the new numbers so you can determine a realistic budget to begin your house hunt.
Do you want to learn more about the new calculations for student loans? Call the team at GoPrime Mortgage in West Asheville today.
Do you want to understand the mortgage process better and get preapproved for your next home purchase? Call the team at GoPrime Mortgage today. GoPrime Mortgage in West Asheville is here to help. Call us today at 828-348-1907 – GoPrime Mortgage in West Asheville.
