Good news! FHA has recently made changes that may allow prospective buyers with student loans more flexibility. HUD has announced that they will reduce the student loan payment required to include in the DTI to .5% when there is no payment listed on the credit bureau. Previously it was 1%. This may nearly double their buying power!

This will be required for all cases assigned on or after August 16, 2021. However, you may begin to use this immediately!

If you have had a client denied in the past due to Student Loan Debt, give us a call today to explore options!

View our Student Loan Comparison Guide to see the recent change and requirement for other products.

Full Mortgagee Letter available here:
https://www.hud.gov/sites/dfiles/OCHCO/documents/2021-13hsgml.pdf