New Loan Solutions for Home Buyers with Student Debt!
Stock photo by Nick Youngson.
Our friends from Fairway Home Mortgage recently let us know about a new program that helps people with student loan debt to purchase a home.
“We understand the significant role that a monthly student loan payment plays in a potential home buyer’s consideration to take on a mortgage, and we want to be a part of the solution,” Jonathan Lawless, Vice President of Customer Solutions at Fannie Mae, said on Tuesday.
The policy offers homeowners the ability to pay off high interest rate student loan debt while potentially refinancing their home mortgage to a lower interest rate, allows borrowers to exclude their debt-to income ratio non-mortgage debt such as student loans, auto loans, and student loans if they are paid by someone else, and makes it more likely for borrowers with student debt to qualify for a loan by allowing lenders to accept student loan payment information on credit reports.
If you have been turned down in the past for a home loan because of student loan debt, you may be able to purchase a home now. You can read more about the new law on Fannie Mae's website.