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Texas FHA and Gerry Nicodemus are pleased to announce that they have posted an important update about how mortgage lenders calculate student loans when the borrower is applying for an FHA loan. The recent revisions to the qualification requirements affect how borrowers may qualify for an FHA loan. The changes mostly affect the borrower's debt-to-income ratio in a negative way. There is a change in the way debt-to-income calculations are established for student loans and FHA loans.FHA loans have long been considered one of the easiest mortgage loans to qualify for. With minimal down payment requirement of 3.5% and the down payment can be a gift from family members, it allows homebuyers to realize their dream of homeownership. FHA loans are the best option for people who filed for bankruptcy or had a prior foreclosure. They are popular among first-time home buyers who have not saved up a large payment for the purchase of a home. However, borrowers must meet specific eligibility requirements to qualify for an FHA-insured loan.
More information is available here https://texasfha.org/fha-loan-requirements
Mortgage lenders must calculate the borrower’s student loan payment as the greater of one percent of the outstanding balance on the loan, or the monthly payment reported on the credit report. The actual documented payment will be used, as long as the payment will fully amortize the loan over its term. In the past, a lender used the monthly payment which appeared on the credit report. Deferred student loans must also use the 1 percent of the loan balance even if no payment is showing on the credit report. This change in regulation makes the FHA loan out-of-reach for most borrowers who have a student loan.
Other factors which affect eligibility for an FHA loan include the credit score, income requirement, Asset Reserve Requirement, and down payment requirement. An appraiser must document an appraisal value of the property. As a general rule, the appraised value of a property must justify the sales price of the house.
More information is available at Texas FHA
Contact Info:
Name: Gerry Nicodemus
Email: Send Email
Organization: Texas FHA
Address: 14355 Torrey Chase Blvd #B, Houston, TX 77014, USA
Phone: (346) 297-0516
Website: https://texasfha.org/fha-loan-requirements/
Release ID: 514954
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