I certified my income for my income-based repayment plan when I was only working part-time, not making a lot of money. My payments are $0 a month. Every month I get a bill for $0.
If I buy a house, will the mortgage lender consider that a $0 debt, or do they have to calculate it as if my loans are in deferment/forbearance? Has anyone gone through this before?
Posted by Dry-Beginning-9999
3 Comments
Haha this exact thing happened to me just last year. I only worked part time during my last year of school and must’ve made less than the deductions so it resulted in $0 payments for the first year. My fiance and I bought a house, but they used my total loan balance, not my monthly payments. It shouldn’t affect any interest rates, but it may decrease what you get approved for.
It’s total debt, not monthly payments. That monthly payment will change sooner rather than later.
Oh! I just went through this! Literally just got a pre-approval last week. They looked at each of my separate loans (I have like 10 different federal student loans) and took 1% of each loan and said that was my estimated payment. That counted towards my debt to income ratio. Yes, even though I have literally never made a student loan payment because I graduated in ‘22. So for my $7000 loan (for example) they said I roughly pay $70 a month for that one, $40 a month for my $4000 loan, etc. Let me know if you have more questions!