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FHA and Student loans- what's the real deal?

Okay, I keep getting conflicting information from lenders regarding this.  If I have student loans that are currently in deferrment and currently being reported as such on my credit report do they have to be included in my FHA debt to income ratio?
To be clear, ALL of my loans have payments due dates of 10/2014 through 08/2016.  They are also shown this way on my credit. 

Previous lenders have told me they don't have to count, but other's say they do.  I wouldn't think it would be so difficult to figure out and that FHA would have a clear rule about this.  Can anyone tell me which is accurate and is there somewhere I can find this info and present it to my lender as proof?
  • November 05 2012 - Seattle
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Answers (4)

You can exclude these from your debt ratio as long as you can prove that they will be deferred at least 12 months from the closing date of the new FHA mortgage.

  • November 12 2013
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Unless the student loans are deferred for 12 months, the lender is required to include the payments during qualifying purposes.
  • November 11 2013
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Debt payments do not have to be classified as projected
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in other words, FHA leaves it up to each lender if they want to count it, but does not require the lender to count it. (i.e. overlay)

If counting it is a problem, just find a lender that doesn't count it.

  • November 06 2012
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Profile picture for Go Huskers
FHA does have a clear rule, the people you have spoken to are idiots!
Link: http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4155.1/41551HSGH.pdf

4155.1 4.C.6.a  Projected Obligations 

"Debt payments such as a student loan or balloon note scheduled to begin or come due within 12 months of the mortgage loan closing must be included by the lender as anticipated monthly obligations during the underwriting analysis. 

Debt payments do not have to be classified as projected obligations if the borrower provides written evidence that the debt will be deferred to a period outside the 12-month timeframe."

It really does make a difference who your loan officer is!
  • November 06 2012
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