BREAKING NEWS: KENTUCKY FHA & STUDENT LOANS


BREAKING NEWS: FHA & STUDENT LOANS

Starting August 16th 2021 a lot more clients will be able to qualify to buy the home of their dreams.(Possibility for immediate usage of the guideline)Finally FHA has came to their senses and lowered the guidelines on Student Loan payment calculations

Check out this link for direct access to the guideline change : https://www.hud.gov/…/OCHCO/documents/2021-13hsgml.pdf* No More 1% of amount owed as payment automatically * If you are on income base repayment we can use that payment amount

FHA now allowing 0.5% on Student Loans instead of 1%


FHA now allowing 0.5% on Student Loans instead of 1%
On Friday, the Federal Housing Administration (FHA) announced updates to its student loan monthly payment calculations to take steps to remove barriers and provide more access to affordable single-family FHA-insured mortgage financing for creditworthy individuals with student loan debt.

The updated policy more closely aligns FHA student loan debt calculation policies with other housing agencies, helping to streamline and simplify originations for borrowers with student loan debt obligations.

This announcement enhances FHA’s ability to serve one of its core demographics—first-time homebuyers.

For all outstanding student loans, regardless of payment status, the payment must be calculated as follows:

If the payment on the credit report is greater than $0, use
the payment reporting on credit, or
the actual documented payment
If the payment on the credit report is $0, use
0.5% of the outstanding loan balance
If documented that the loan has been forgiven, canceled, or discharged in full, the payment can be excluded.

Lenders may implement the changes immediately but must implement the changes for FHA Case Numbers assigned on or after August 16, 2021.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.10602 Timberwood Circle Louisville, KY 40223Company NMLS ID #1364

click here for directions to our office
Text/call:      502-905-3708fax:            502-327-9119
email:
          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/