If you have deferred student loans and are considering buying a home - you might want to make a decision sooner rather than later. In the latest edition of the FHA Handbook (released today), your student loans may have enough of an effect on your debt/income ratio that your ability to get a loan may be in question if you're right on the edge. September 14, 2015 is the day that new policies go into effect.
Previously, FHA did not count the payment on a deferred student loan if the payment was deferred for more than one year, but today's release brings in a change, effective on all case numbers assigned 9/14/15 and beyond. FHA will now count payments on all student loans whether or not they are deferred. Student loan payments will be included in the debt to income ration & could make a difference in loan qualification.
If you're on the fence about whether to buy or not, it would be a good idea to get in touch with your REALTOR® to talk about your needs & current market conditions - and get thee to a lender right away to see if this FHA policy change will affect your eligibility for a home loan. Get that FHA Case number assigned to you before September 14th! If you don't know where to start, your agent can help you find a good mortgage professional.
It isn't time to panic, rather a good opportunity (now that the summer buying frenzy has waned) to buy a home without as much competition for properties as there was in June & July. If you've been thinking about buying, but have been "on the fence" for a while - it would be smart to check out your eligibility in the next couple of weeks.
There's nothing worse than planning to buy a home in the next few months...only to find that you used to be eligible, but aren't anymore because FHA policies on student loan debt changed - and you waited a few days or weeks too long.
If you're in the Tucson Metro - give me a call & lets talk about your needs & goals - and lets see how we can achieve them together. 520-302-5368
Here's link to the new lender handbook that was released today - if you're having trouble going to sleep, it may be helpful: Aug 14 FHA Policy Handbook Update
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