Tag: STUDENT LOANS FHA MORTGAGE

FHA now allowing 0.5% on Student Loans instead of 1% On Friday, the Federal Housing Administration (FHA) announced updates to its student loan monthly payment calculations to take steps to remove barriers and provide more access to affordable single-family FHA-insured mortgage financing for creditworthy individuals with student loan debt. The updated policy more closely aligns FHA student loan debt calculation policies with other housing agencies, helping to streamline and simplify originations for borrowers with student loan debt obligations. This announcement enhances FHA’s ability to serve one of its core demographics—first-time homebuyers. For all outstanding student loans, regardless of payment status, the payment must be calculated as follows: If the payment on the credit report is greater than $0, use the payment reporting on credit, or the actual documented payment If the payment on the credit report is $0, use 0.5% of the outstanding loan balance If documented that the loan has been forgiven, canceled, or discharged in full, the payment can be excluded. Lenders may implement the changes immediately but must implement the changes for FHA Case Numbers assigned on or after August 16, 2021. Joel Lobb Mortgage Loan OfficerIndividual NMLS ID #57916 American Mortgage Solutions, Inc.10602 Timberwood Circle Louisville, KY 40223Company NMLS ID #1364 click here for directions to our office Text/call: 502-905-3708fax: 502-327-9119 email: kentuckyloan@gmail.com https://www.mylouisvillekentuckymortgage.com/