Posts tagged with "mortgage"

How to Qualify for a mortgage with Student Loans


Getting qualified for a mortgage loan so you can buy that house you really want can be a real *#%$! challenge.  Here’s some insight that just may help you get prepared, compliments of Mike Wickham over at Caliber Home Loans (one of my preferred lenders btw).

Good Day!

You might have heard over the last 12 months or less that all loan programs have changed in regards to what lenders will use for a monthly payment when qualifying a borrower/s with student loans. Many borrower/s are on an income based repayment plan with no payment or very little. Most loans will not allow no payment or a payment that is not fully amortized. Most loans programs will require 1% of the balance or to document the fully amortized payment if less than 1%. This can really have a huge impact on the borrower/s ability to qualify. Please be aware that on Conventional loans here are the general guidelines from Fannie Mae and Freddie Mac:

 Fannie Mae:

  • For all student loans, whether deferred, in forbearance, or in repayment (not deferred), must include a monthly payment in the borrower’s recurring monthly debt obligation when qualifying the borrower. One of the below options below must be used to determine the repayment amount:
    • 1% of the outstanding balance; or
    • the actual payment that will fully amortize the loan as documented in the credit report, in documentation obtained from the student loan lender, or in documentation supplied by the borrower.
    • a calculated payment that will fully amortize the loan(s) based on the documented loan repayment terms; or
    • if the repayment terms are unknown, a calculated payment that will fully amortize the loan(s) based on the current prevailing student loan interest rate and the allowable repayment period shown in the table below.

Freddie Mac:

  • If no monthly payment is reported on a student loan that is deferred or is in forbearance, and there is no documentation in the loan file indicating the proposed monthly payment amount (e.g., the loan verification letter), 1% of the outstanding balance will be considered to be the monthly amount for qualifying purposes.
  • Examples of documentation of the required payment amount include
    • A direct verification obtained from the creditor
    • A copy of the installment loan agreement obtained from the Borrower, or
    • If payments are currently deferred, the payment amount that will be required once the deferment or forbearance period has ended, as stated in a copy of a financial institution’s student loan certification or the installment loan agreement.

We can use Fannie or Freddie and will evaluate each scenario to use the best route for the borrower/s.

Have a great day/week!


Mike Wickham
Loan ConsultantNMLS: 505614

Caliber Home Loans, Inc.
10022 Lantern Road Suite 600

Fishers, IN  46037

Mobile: 317-260-1563 |Office: 317-576-4115

EFax: 877-673-0432


Apply On-Line @


Download My Smart Phone Application:

To catch other helpful blog posts, simply go to  And please keep in mind…  “I work harder to make good things happen!”  -Bob


Mortgage Rates are Greaaaaat!

Actually, that’s an understatement.  Take a quick look at this graph and you’ll get the idea.

mortgage rates 2016


The average rate across the nation for a 30 year fixed rate mortgage is just 3.65%.  That makes for a $643 monthly loan payment on the median average house in central Indiana (assuming a 5% cash down payment).  Ten years ago the rate was 3% higher and the payment on the same priced house would’ve been $902.  Now that’s a huge savings!

Today’s low rates help both buyers and sellers.  Buyers can purchase more house at a low monthly cost, and that allows more sellers to sell their properties.

If you’d like a hand understanding how you can take advantage of today’s low mortgage rates— call me.

 “I work harder to make good things happen!!”

Non-Banks Making More Mortgages

Back in 2007, banks made 3 out of every 4 home mortgage.  As the financial crisis deepened, they became just about the only source for mortgage loans— that despite the fact their lending practices were at the root of the cause of the financial crisis.  Go figure?!

However, now the wor has turned.  Banks now account for just 1 out of every 2 mortgages, and we’re starting to see some of the big banks exit the mortgage biz altogether.  That’s fine with me.  Good riddance!  Historically, big banks have been the stingiest and least friendly lenders to work with.

Today, we’re seeing more and more credit unions and especially mortgage companies making loans so that people can buy hKouses.  I think that’s great news for consumers.  Mortgage companies are more consumer-oriented, more creative, willing to figure out ways to make more loans, and just downright friendlier and easier to work with.  I mean, what’s not to like?  Hopefully this trend continues.

If you have questions about mortgage financing, please be sure to ask.  I spent 17 years in those trenches and still have a strong network to call upon.  Talk soon, Bob