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Student Loan (IBR) and Mortgage Qualification

I am looking for a lender who understands the federal student loan income based repayment plan.  My wife and I are both employed but have substantial student loan debt.  Our credit reports do not reflect our actual monthly student loan payments because we are on the IBR plan.  I am looking for a recommendation on a lender/loan officer who understands the program and can get us approved for a mortgage. 
  • August 13 2013 - Denver
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Answers (5)

Profile picture for ErikBHatch

My mortgage broker told me that I HAVE to have documentation of what exactly my IBR payments will be for no less than 12 months from closing, however since IBR's are recalculated annually from my W2's, they only reflect what they will be for the next 12 months from renewal. For example my documentation shows my IBR payments will be $0 from February 1st 2014 until February 1st 2015, after which it shows the maximum amount of $412, even though when I renew it in January of 2015, It will show $0 until 2016, and so on and so on. So unless I time a closing for exactly the time it renews, It will never show my actual payments for 12 months past closing....

  • February 24 2014
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I am local and would be glad to help! 

You can an IBR payment to qualify for a loan. I am well versed on IBR loans and had success getting my customer approved with these in the last month. Feel free to contact me to discuss your options.

All The Best!
  • August 16 2013
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If you are looking for FHA funding-the rule is that the lender must use your maximum payment that you will ever have for those student loans (this is usually found online in your student loan website account). That's it! Go online to your student loan account and print that page for your lender-it will show current payment and maximum payment (in the future). This should be enough documentation for even a novice loan officer to do a loan qualification. Conventional loans are a bit different-it can vary by lender.
  • August 14 2013
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Hello,

I have delt with a great deal of borrowers in this situation. The thing that would be a big factor in getting you quilified would be something documenting that you are in the IBR plan and what the terms of your plan are. Because if the actual payments are different than what shows on your credit report then we would need to see some sort of documentation that shows this so we can calculate the numbers correctly. 
I
hope this helps if you need further assistance or have any questions please feel free to contact me. 
  • August 13 2013
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Hello,

I have worked with multiple borrowers and their situations regarding student loan repayment and deferment to calculate the proper Debt to Income calculations to stay within guidelines.  Please call me at [spam content removed by Zillow moderator due to violation of Good Neighbor Policy] to discuss your situation in detail.  Thank you- Ben
  • August 13 2013
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