Qualifying for a USDA Mortgage When You Have Student Loans
These days there is no dearth of home buyers who are students and are either going back to school or recently graduating. If you are a student who is planning to but his own place then the information provided about USDA regarding student loans here can be very important for you. You need to take advantage of this situation and also share it with your friends.
Let us take a look at USDA loan eligibility criteria with student’s loans.
Repayment of Student Loans
If you are applicant who has student loans in current repayment, then you need to have the right verification documentation to prove that you have current payment due. These verification documentation can be:
- Online account verification
- Loan servicer letter
- Other related official documentation in written
This type of verification is valid for fixed time period of 120 days and 180 days for new construction.
USDA Mortgage Qualifications
Qualifying for a USDA loan with as student loan is not simple and unfortunately just a credit report alone is not enough to qualify as a borrower. With applicants who have a student’s loans which are not in repayment status it is allowed that they use approximately 1% payment of the loan balance that is reflected on their credit report. Another option for this for applicant is to have your loan servicer provide you with verified fixed rate payment so that a documented format is available of the payment that is due once the deferment ends.
For an applicant who is on a graduated payment plan it is required that the maximum payment documented on the repayment plan agreement must be utilized towards debt ratio according to the USDA guidelines.
Qualifying for a USDA loan with a student’s loan can be a difficult process on your own, this is why working with a lender who specializes in the USDA loan process can help you realize your dream faster.
Call us or drop an email and we promise to help you in the best manner possible.