Great news for homebuyers and homeowners with student loan debt!
Fannie Mae has announced new policies to help borrowers with student debt qualify for a home purchase or refinance loan.
The new rules provide three flexible solutions to current and future homeowners, while allowing lenders to serve more borrowers. These solutions include:
Student Loan Cash-Out Refinance: Offers homeowners the opportunity to pay off high interest rate student debt while potentially refinancing to a lower home loan rate.
Debt Paid by Others: Excludes non-mortgage debt (such as credit cards, auto loans and student loans) paid by someone else from the borrower’s debt-to-income ratio, expanding borrower eligibility to qualify for a home loan.
Student Debt Repayment Calculation: Allows lenders to accept student loan payment information on credit reports, increasing the likelihood that borrowers with student debt could qualify for a loan.
The bottom line is that if you currently carry student loan debt, buying a home or refinancing has just gotten easier!
If you or someone you know is interested in this opportunity, I’d be happy to help investigate options.
HOMES MORTGAGE, LLC
Source: Fannie Mae
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Source: Fannie Mae Eases Student Debt Policy