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First time homebuyer and student debt

Hello. I am a fully employed single wage earner that is also an evening MBA student. My student loans currently total $80K, and they will approach $100K by the time my program is complete. I graduate in mid-2013, and have deferred all the student loan payments until 6 months after that. The only consumer debt I have is a $300 car payment. My FICO is 697. I have had a steady corporate income since I have been employed for the past 5 years.

Can I still qualify for a mortgage loan in 2012? As a first time homebuyer in the situation above, which lenders should I focus on? How will they treat the deferred student debt, is it included in the DTI calculation? Thank you
 
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December 15 2011 - Downtown
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Answers (6)

Work the numbers with a lender you trust (as Tiffany said).  Student loan payments and how long you have to prove deferment vary depending on program.

Before any lender will tell you what you qualify for make sure you know your comfort range for a payment.  Payment should be slightly less than what you are paying in rent + what you are consistently saving every month. 

Good luck.  This is a great time of year to plan and get ready to buy.

Also needed will be condo dues and property taxes.
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December 15 2011
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Thanks for the response. Suppose annual income is $69K, down payment amount up to $50K, and price range is $250-350K for a condo.  

May also be interested in owner-occupied duplex/triplex if financing is available given my stats.

  
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December 15 2011
As Bob said, you need to post more information for anyone to give you a complete answer.

What is your annual income?
How much do you have for a downpayment?
What price range are you looking in and what type of home are you interested in?
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December 15 2011

Obviously any lender will need a lot more details to really tell you what you can or cannot do right now.  However to answer your question about student loan debt, conventional lenders will count the payment against you.  If no payment is indicated you will have to probably go to US Department of Education and do a consolidation worksheet to come up with the payments.  FHA by contrast will not count the payments against you if you can show that the payments are not scheduled to begin for the next 12 months.

Your credit score would be fine for FHA, but right on the edge for conventional – especially with a small down payment.

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December 15 2011

Jeff's answer won't help you. You need to speak with a lender, and they will need more information. How long is left on your car note, what your income is, price range for homes, any other outstanding debt, etc. It will be in your best interest to get your score higher. They may also need to know the approximate payment on your loans, but how that is handled may change as lending standards seem to move around quite a bit these days.

I would find a lender you trust now, and plan on what you can afford and what you need to do to get ready.

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December 15 2011

It sounds like you should qualify easily for a mortgage.  You should find a good mortgage broker.  They represent many sources of loans.  If you would like a referral to a great broker send me an e-mail... BTW... I am in Los Angeles.. you should find a local mortgage broker.

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December 15 2011
 
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First time homebuyer and student debt
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December 15 2011 | 6 answers
  • Asked by rrezago
  • In Mortgage
  • December 15 2011
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