Deferred Student Loans Now Count!

August 29th, 2010

It used to be that student loans that were deferred 3 years or more did not count against you in your debt ratios. Not anymore…

Now even if your student loans are deferred for longer than 3 years, on a Conventional loan the underwriter will count the debt against you. On FHA loans they will not count the debt against you on student loans deferred for more than 3 years, but I am guessing FHA may follow the lead of the Conventional loans and they may change their policy soon too.

This is another example of the continued tightening of the underwriting guidelines. Expect to see more and more tightening, it will get worse before it gets better.


Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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