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Wednesday, August 02, 2017

New Fannie Rule: "Bring Us Your Poor, Your Tired, Your Student-Loan-Debt-Overloaded..."

https://www.forbes.com/sites/nickclements/2017/07/31/new-rule-makes-it-easier-to-get-a-mortgage-with-student-loan-debt/#66da4a86173d

The new statement from Fannie Mae makes it clear:  the reduced payment can be used, even when the payment is $0. According to Fannie Mae, "if the lender obtains documentation to evidence the actual monthly payment is $0, the lender may qualify the borrower with the $0 payment as long as the $0 payment is associated with an income-driven repayment plan."
This is important, because the payment calculation for a student loan (10% of the discretionary income) is different from the DTI requirement of a mortgage. Many Americans could find it easier to qualify for a mortgage while in student loan debt.

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