When you speak with a lender in order to apply for a mortgage loan, your financial life will be examined in and out like a TSA security check. One major aspect they look at of course is debt. Now the ironic thing is we are told we should buy a home as soon as we can, how it can be one of the best financial decisions of your life. But with student debt increasing year after year many people don't qualify for a loan after they graduate. A little topsy turvy don't you think? Well good news!
Fannie Mae announced some new policies aimed to help borrowers with student loans and help them qualify to purchase a home!
Jonathan Lawless, vice president of customer solutions at Fannie Mae, commented:
“We understand the significant role that a monthly student loan payment plays in a potential home buyer’s consideration to take on a mortgage, and we want to be a part of the solution. These new policies provide three flexible payment solutions to future and current homeowners and, in turn, allow lenders to serve more borrowers.”
The new policies include:
Student Loan Cash-Out Refinance – By providing the borrower with extra cash, this option will provide current homeowners with the opportunity to pay off student debt while refinancing to a lower mortgage interest rate.
Debt Paid by Others – This option will increase the borrower’s eligibility by eliminating non-mortgage debt (e.g., credit cards, auto loan, student loan) that is paid by someone other than the borrower.
Student Debt Payment Calculation – This option allows lenders to view and consider student loan payment information on credit reports. By allowing this, it makes borrowers with student loan debt more likely to qualify for a loan because their situation can be analyzed in its entirety.
So for all my fellow recently graduated students with debt who have been thinking about buying, call me today! This may open up new doors in order for you to become a home owner.
Life is a 24 hour business, getting married or divorced, having kids or adopting,
downsizing or upgrading, starting a new career or retiring, and moving to a different
state or country. There’s a home for every stage in your life. Let me help make your life easier.
Denver CO Homes for Sale – Wan Lim, Associate Broker/ Realtor
Your local realtor serving Cherry Creek, Centennial, Denver and the
surrounding communities. Purchasing a home is not easy, but it can be
with me! I will work tirelessly with investors, buyers and sellers to
save you time and money but most importantly to get you into the
home of your dreams! Call Wan Lim anytime at (303) 910-0818
You can also text 'Wan' to 85377 for my mobile business card!