How do FHA Mortgage Lenders determine the monthly payment on a student loan?

SELF EMPLOYED MORTGAGE LENDERS QUESTIONS AND ANSWERSCategory: FHA QuestionsHow do FHA Mortgage Lenders determine the monthly payment on a student loan?
Thomas Martin Staff asked 5 years ago

How do FHA Mortgage Lenders determine the monthly payment on a student loan?

Regardless of the payment status, the FHA Mortgage Lenders must use either:

  • The greater of:
    • 1 percent of the outstanding balance on the loan; or
    • the monthly payment reported on the Borrower’s credit report;

                    or

  • The actual documented payment, provided the payment will fully amortize the loan over its term. 

The FHA Mortgage Lenders must include all Student Loans in the Borrower’s liabilities, regardless of the payment type or status of payments.
Student Loan refers to liabilities incurred for educational purposes.
 
If the payment used for the monthly obligation is:

  • less than 1 percent of the outstanding balance reported on the Borrower’s credit report, and
  • less than the monthly payment reported on the Borrower’s credit report;

the FHA Mortgage Lenders must obtain written documentation of the actual monthly payment, the payment status, and evidence of the outstanding balance and terms from the creditor.
 

FHA Mortgage Lenders By State: 
Florida   Texas  Georgia  Alabama   California  

Latest pages

Serving These Fine Texas Cities

About Us

We are US Mortgage Lenders. Major real estate brokerages regularly entrust their clients to our team due to our reputation for transparency, delivering on time, customer satisfaction and loyalty. With five-star customer reviews on Zillow.com and counting, you’re assured of having the backing of an experienced team.

Show Buttons
Hide Buttons