Up till now if you had student loans, a lender could use your current payment towards your debt ratios. On June 30th that will all change. Starting July 1st we will need to use 1% of your student loan balance as your payment. Example, if you current payment is $54 per month but you owe $20,000 on your loan… we will now have to count your payment as $200 per month. That could kill someone’s chance at buying a home. Let’s hope the people at FHA come to their senses before July 1st.
*Calculator Disclaimer: Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.