Student Loans have become a necessity for most Millennials trying to obtain a college degree. This is often a tough payment to mentally swallow and often keeps people renting longer than they should because they think there is no chance at buying a home. Most folks are graduating with student loan debt, cell phone bills and car payments and are finding it extremely difficult to qualify for a mortgage.
Take a moment to better understand the rules on how your student loan debt will affect the mortgage qualification. Please read below:
Conventional Mortgage Financing (Freddie Mac):
If no monthly payment is reported on a student loan that is deferred or in forbearance and there is no documentation available indicating a proposed monthly payment, 1% of the outstanding balance must be used to qualify.