If you are among the many Americans burdened with student loan debt and because of this you were not able to qualify for a mortgage loan, Fannie Mae and Freddie Mac have announced they have eased requirements for student loan debt in the debt to income ratio (DTI.)
Previously lenders were required to either use 1% of the outstanding balance on a student loan in the qualifying DTI calculation if there was not a payment listed on the credit report or if there was a monthly payment listed, that payment was used even if the borrower's actual payment was quite a bit less.
Now both mortgage giants will now allow borrowers to submit paperwork showing what their actual payment is and use that amount in the DTI. Often times, because of income based repayment plans, the monthly amount might be zero.
These new changes will open up the dream of home ownership for many Americans.