Blog Category: school loans

mentor 3512369 1920

Getting A VA Mortgage Approved With Student Loan Debt

Have student loan debt and getting a mortgage? When calculating a student loan payment on a VA loan there are various rules. These relate to what monthly payment is counted on that student loan debt.

What if documentation shows the student loan debt will be deferred at least 12 months beyond the closing date? Then no monthly payment is counted.

What if a student loan is in repayment or scheduled to begin within 12 months from the date of a VA mortgage loan closing? Then the lender must consider the anticipated monthly payment in calculating the debt-to-income ratio. A payment is established by calculating each loan at a rate of 5% of the outstanding balance divided by 12 months. Read More