When calculating a student loan payment on a VA loan there are various rules to pay attention to as far as what monthly payment is counted on that student loan debt.
If written evidence shows the student loan debt will be deferred at least 12 months beyond the closing date, no monthly payment is counted.
If a student loan is in repayment or scheduled to begin within 12 months from the date of a VA mortgage loan closing, 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 the rest of this entry »