Florida Mortgage Blog

How to Reduce student loan obligations

June 22nd, 2015 6:53 PM by Preston Ware

How to reduce student loan obligations:

Student loans can make or break your loan. Many of my first time home buyers have student loans. It used to be that if the loans were in deferment for more than three years we would not have to include those debt in your ratios.

Presently, we have a guideline change where we need to carry a 1% payment no matter if the student loan obligation is deferred for more than three years or not. Guidelines like this don’t always translate to the borrower who is squeezing out their income and debt ratios to purchase a nicer home. 

Recently a customer of mine passed on some wonderful information that I would like to send to all of my customers. You can Consolidate those student loans with better terms !!!!

If you have substantial amounts of student loans, perhaps you should consider consolidating them. I don’t have all of the ins and outs but go to this web site and check it out.

Go to http://www.studentloans.gov and fill out the application. In the case of my future borrower she had 6 loans totaling $650 in monthly payments and now she is looking to be spending about $150 a month!

This greatly affects her loan decision and allows her to buy more house now, not in ten years. If you have student loans, go check this out.

And when you are done, please call me to talk about your loan.

Preston Ware 
Florida Mortgage Banker


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