Student Loans Income Driven Repayment Plans and Conventional Mortgages

On a conventional mortgage, our lenders will use the actual payment you are making according to your income driven repayment plan when you are applying for a conventional mortgage. Even if you are currently paying $0/month on your student loans, as long as we can give our lenders supporting documentation from your student loan providers evidencing that the $0/month is indeed what your income driven repayment plan is, we can use the $0/month in qualifying you for a conventional mortgage.

If however, your student loans are in a forbearance or deferment, they will take 1% of your student loans balance to figure out your payment or a fully amortizing payment on a conventional mortgage application.

This will make a big difference in how much of a house you can afford, so when applying gather up any documentation you have regarding your student loan payment plans.