School Loans
I just finished working with an agency to increase my credit score to 695 so that I can qualify for a mortgage. My largest debt is school loans for my grad school program $113.2k, credit cards $11k and my car loan $6.5k. I am no longer in a deferment as I have graduated and started working 13 months ago. Unfortunately, my income is still lower than I would like, $88k/annually. Also, I am worried that lenders will deny me because of my high balance school loan. Is this the case? How do lender view school loans? Thx! by gwenethplannter19... from Berkeley, California. Jul 6th 2018
A lender qualifies based on the payments reflected on your credit report. Qualifying varies on loan program. A certain percentage of your gross income can go towards monthly debt payments (debt-to-income--dti--ratio). VA loans for military (our specialty) allow much higher debt payments and higher qualifying purchase price. FHA is higher, as well.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
More info needed, but in general.. we don't go by your outstanding debt, we go by your outstanding monthly obligations.. So, what's the minimum payments on the credit cards, car loan and student loan? That's what we need to know.. at $88K annually, that's $7,333 per month x 50% maximum debt to income ratio = $3667. This means that your total monthly obligations including the new housing payment cannot exceed $3,667 per month. So, more than likely, you can buy something.. but how much depends on your monthly out go.. I'd be glad to look at your complete loan profile and advise you.. feel free to reach out to me anytime.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893
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