Underwriting FHA and student loans?
Please answer only IF you are an underwriter or have been. This is a very serious question for me and I obviously can’t get a hold of a u/w so I am asking you for your sincere help.
We are trying to purchase a home. Suppose to close this past Monday. Problem is my student loans. I am a student but not until a few weeks from now. So therefore my loans are in grace period so I can’t do anything! I can’t defer them because they are in grace. I can’t give them a document saying I am in school because as of today right now I am not. I will be in two weeks and got a notarized and certified document saying anticipated grad date which is over a year from now. It also states that I will be a full time student in two weeks. When you look into the FHA underwriting guideline Handbook 4155.1: 4.C.6.a, it states the following:
If a debt payment, such as a student loan, is scheduled to begin within twelve months of the mortgage loan closing, the lender must include the anticipated monthly obligation in the underwriting analysis, unless the borrower provides written evidence that the debt will be deferred to a period outside this timeframe. Similarly, balloon notes that come due within one year of loan closing must be considered in the underwriting analysis.
Since I have this documentation, what is the problem? Am I going to lose the loan? The income to debt ratio is high and if it were included with the student loan it would be to high. But without it we are fine. We have already invested thousands into this home, we don’t want to lose it. HELP what do we do?
The problem is I can’t get the in school deferment because technically I am not an actual attendance until the summer session ends and fall semester begins on Aug 18th. this is the entire problem..so the school can’t send the loan companies verification until Aug 18th and the lenders can’t say I am a student until they get verification from the school. It’s pretty much a catch 22. 🙁 this sucks… also see the additional details to same question I posted in another category here:
Please help if you have ideas that would actually help! And I do have documentation to verify I am a student or I should stay a student waiting to start school so i can technically be verified
I should also add that I have income but it can’t be used more like a “self employment” type of deal that has less than 2 years. So on my husbands income alone we do qualify for the loan. However if we add the school loans into it it will be too high debt ratio… Also in addition I don’t see why my income couldn’t at least be a compensating factor to the loan although it can’t be used for the loan…