{"id":5424,"date":"2017-02-02T13:07:19","date_gmt":"2017-02-02T13:07:19","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=5424"},"modified":"2020-07-13T22:32:47","modified_gmt":"2020-07-13T22:32:47","slug":"student-loan-debt-va-loans","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/student-loan-debt-va-loans\/","title":{"rendered":"How to Buy a Home with Student Loan Debt. VA New Policy Can Help!"},"content":{"rendered":"

Student loan debt and payments play a large role in buyers qualifying for a mortgage loan.\u00a0 With escalating costs of a college education, many graduates carry the heavy burden of debt.\u00a0 Luckily there are many programs providing student loan\u00a0payment relief.\u00a0 But when it comes to mortgage qualification, the programs are often not recognized.\u00a0 VA home loans<\/span><\/a>, available to qualifying military veterans or active service members, are the most flexible when it comes to student loan debt.\u00a0 So Veterans can take advantage of these flexible student loan guidelines\u00a0to\u00a0purchase\u00a0a new home.<\/p>\n

The Veterans Benefits Administration in the Department of Veteran Affairs<\/span><\/a> recently announced a rule clarification in \"studentregards to student loan debt.\u00a0 Additionally, new policy provides guidance for student loans in repayment.\u00a0 This includes loans which will be\u00a0in repayment\u00a0within 12 months.\u00a0 Check out how VA loans help\u00a0service members, Veterans, or surviving spouses with student loan payments.<\/p>\n

How does VA treat deferred\u00a0student loan debt?<\/h2>\n

Deferred student loan payments mean\u00a0payments are not required\u00a0for a period\u00a0of time.\u00a0 Guess what? \u00a0VA loans<\/span><\/a> recognize the zero\u00a0required payment under certain circumstances.\u00a0 VA guidelines state the following:<\/p>\n

Student loan payments which are deferred greater than 12 months after the mortgage closing date may be disregarded!<\/strong><\/em><\/p>\n

In order to exclude the student loan payments, proof of the deferment period is required.\u00a0 Whether the student debt is for the borrower or co-signed for family, this exclusion of payments will help tremendously.\u00a0 Learn student loan payment options at Navient<\/span><\/a> or Sallie Mae<\/span><\/a>.<\/p>\n

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So do you have other issues on your VA qualification?\u00a0 Read this\u00a0Creative VA Loan Solutions<\/span><\/a> article.<\/p>\n

How Income Based Repayment Student Loan Debt Affects VA Approvals<\/h2>\n

A very popular payment plan for student loans involves Income Based Repayment known as IBR.\u00a0 These payments are often much lower than the fully required payment.\u00a0 Most mortgage programs will not count the IBR payments and VA\"student has a new policy in regards to these loans.<\/p>\n

So if a student loan debt\u00a0is not deferred over 12 months after the closing date, VA has certain requirements.\u00a0\u00a0Here are the\u00a0VA requirements to calculate the debt ratio and residual income.<\/p>\n

Must use the higher of…<\/strong><\/p>\n