Student Loan Debt
The broad burden of student loan debt.
Student loan debt impacts 44 million people in the United States and 41% report that they are delaying homeownership because they find it difficult to qualify for a mortgage due to the impact of these loans on their debt-to-income ratios.
Help is on the way for homebuyers with student loan debt.
We are excited to announce that Fannie Mae is making it easier for home buyers with student loan debt to purchase or refinance a home by implementing the following guideline changes:
- Changes to how debt-to-income ratios are calculated for borrowers with student loans
- Expanded guidelines that allow borrowers to pay off student loans without the typical rate increase that’s required for cash out transactions
- Exclusion of student loan payments from debt-to-income ratio calculations when a borrower can verify those payments are made by a family member with 12 month’s canceled checks
Now is a great time to connect with your clients who have been impacted by student loan debt to let them know Fannie Mae is making changes to help them!
Reach out to me today to learn more about how your buyers can benefit from these new guidelines when buying a home.