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Student Loans May Affect Mortgage Eligibility

Department of Agriculture home loans will take into account 1 percent of the balance of the loans in cases where the Education Loan in India are deferred or under an adjustable repayment plan such as income-based repayment. If you are on a standard, nonadjustable payment plans, that is the amount that will be used in the debt-to-income calculation.

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Student Loans May Affect Mortgage Eligibility

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  1. Education Loan in India

  2. Student Loans May Affect Mortgage Eligibility

  3. Paying off your student loans is just one of the competing financial goals many consumers are required to juggle. • It's pretty clear that your student loan payments are going to affect how much and how quickly you're able to save a down payment for your first home, as well as the affordability of your mortgage payments. • But they can also affect your eligibility for the mortgage in the first place. • Take a look at the following to see how the different federal mortgage programs view the various types of student loan payments.

  4. FHA Loans • Created in the 1930s, a Federal Housing Administration mortgage is a popular choice for many first-time homebuyers. • Not only does it often allow for a lower down payment – 3.5 percent in some cases – the credit criteria can be a little more forgiving than one from a traditional lender.

  5. What lenders look for here is whether your monthly debts are so high compared with your income that you are likely to struggle or be unable to pay your mortgage payment down the line. • Most lenders look for debt-to-income ratios lower than about 43 percent, but some are OK if it is as high as 50 percent. • This includes situations where the borrower is under an income-based repayment plan with a payment of zero dollars. • Borrowers with fixed monthly payments will have those payments used in the debt-to-income formula.

  6. VA Loans • Veterans Administration loans work under similar guidelines; however, they will not count the student loan debt if the loan is in an 18- to 24-month deferment at the time of closing. • Anecdotal evidence seems to indicate that underwriters sometimes use the same standards for both FHA and VA home loans, so it's always a good idea to ask how a deferred or zero dollar income-based repayment amount will be treated.

  7. USDA Loans • Department of Agriculture home loans will take into account 1 percent of the balance of the loans in cases where the Education Loan in India are deferred or under an adjustable repayment plan such as income-based repayment. If you are on a standard, nonadjustable payment plans, that is the amount that will be used in the debt-to-income calculation. • Source: (http://bit.ly/1QGcNBk)

  8. Follow us on https://www.facebook.com/AvanseEducationLoan https://www.linkedin.com/company/avanse-financial-services https://twitter.com/avanseeduloan https://plus.google.com/+AvanseFinancialServicesLtdMumbai https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug

  9. Read more on Education Loans : http://www.avanse.com/avanse-education-loans/ • Thank You..!!!

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