Does FHA count student loans?
Yes. FHA generally uses the payment shown on the credit report or an actual documented payment when that amount is above $0. If the reported monthly payment is $0, FHA generally uses 0.5% of the outstanding balance.
What this actually means.
The payment plan's name does not decide the calculation by itself. A documented payment above $0 may be used. When the credit report shows $0, the lender generally uses 0.5% of the balance unless the loan is documented as forgiven, canceled, discharged or paid in full.
Where this can move.
Income type and history, recurring debts shown on the credit report, automated vs manual underwriting, compensating factors, and lender overlays can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.