Fannie Mae Announces Programs To Aid With Student Loan Debt

Dated: 05/19/2017

Views: 117

When applying for a home mortgage, almost every aspect of the applicant’s financial life is analyzed – one of those being debt. Unfortunately, applicants with student loan debt are often rejected from being able to obtain a home mortgage loan due to their debt-to-income ratio. Recently, Fannie Mae announced new policies that aim to help potential borrowers with student loan debt qualify for a home loan and combat the negative effect that student loan debt has had on the housing market.

The new policies include:

Student Loan Cash-Out Finance – By providing the borrower with extra cash, this option will provide current homeowners with the opportunity to pay off student debt while refinancing to a lower mortgage interest rate.

Debt Paid by Others – This option will increase the borrower’s eligibility by eliminating non-mortgage debt (e.g., credit cards, auto loan, student loan) that is paid by someone other than the borrower.

Student Debt Payment Calculation – This option allows lenders to view and consider student loan payment information on credit reports. By allowing this, it makes borrowers with student loan debt more likely to qualify for a loan because their situation can be analyzed in its entirety.


Published by:

Karen & Henry Seale

http://SealeTheDeal.com

(409) 770-4076

Image title



Latest Blog Posts

Houston Home Sales Breaks Records In June

Houston Home Sales Break Records In JuneAccording to the latest monthly report from the Houston Association of REALTORS (HAR), 8,518 single-family homes sold in June compared to the last record high

Read More

IMPROVE YOUR HOMES SAFETY TO MAKE IT MORE MARKETABLE

Homeowners know the value of reinforced doors with deadbolts or a comprehensive home security system. But there are many less obvious fixes to ensure your home is attractive to safety-conscious

Read More

Weathering A Hurricane

Handy Tips For Before, During, & After a StormBeforeTalk to your insurance advisor to be sure you have the right coverage. 📱Listen to weather advisories. ⛈️Cover windows with.

Read More

Hurricane Prepareness Checklist

Food & Supplies for Severe Weather Along the Texas Gulf CoastAs we approach early August and the month of September,  Texas residents along the Gulf Coast should be prepared to protect

Read More