Does FHA count student loans?
Yes. FHA generally counts the reported or documented student-loan payment when it is above $0. When the reported payment is $0, FHA generally uses 0.5% of the outstanding balance.
What this actually means.
This calculation applies even if payments are deferred. If a lower positive payment is used instead of the credit-report amount, the lender needs documentation from the loan servicer. A loan documented as forgiven, canceled, discharged or paid in full can be excluded. Bring the current statement and repayment status so the lender can apply the correct rule.
A simple example
Illustration only. This is not an approval or a loan offer.
Where this can move.
Repayment status, the credit-report payment, current servicer documents, forgiveness or payoff evidence, and lender requirements.
Check the sources
Sources checked . Program guidance and lender requirements can change.
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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.