| Amtrust Mortgage Banking | Credit | Student Loans | Traditional Underwrite: Student loans must be counted in the debt ratio unless evidence can be provided that they will be deferred in excess of one year. Gemstone AU and DU Underwrite: Student loans must be included in the liabilities regardless of deferment period. |
| Chase | Credit | Student Loans | All student loans must be included in the debt ratio regardless of deferment status or number of payments remaining. If a monthly payment is not indicated on the credit report, documentation to support the verified payment amount must be obtained and included in the monthly debt calculation. |
| CitiMortgage | Credit | Student Loans | Obligations to repay all student loans—including accounts that are deferred—must be included in the debt-to income
ratio unless 10 or fewer payments remain. To calculate payment, use 1.5% of the balance due if the
monthly payment is not included on the credit report. To use an amount less than 1.5%, borrower must provide
documentation to support the actual payment. |
| Flagstar | Credit | Student Loans | All student loans must be included in ratios even if the repayment period has not begun or the payment has been suspended with creditor approval. |
| ING Mortgage | Credit | Student Loans | The following are not included in the DTI ratio:
- Student loans that are in “deferment” |
| M AND T Mortgage | Credit | Student Loans | Must be calculated in the DTI unless deferred for more than 12 months. |
| PHH | Credit | Student Loans | Deferred student loans and loans in forbearance must be included as part of the customer's recurring monthly debt obligations. If the customer's credit report does not indicate a monthly payment, a copy of the customer's payment letter or forbearance agreement is required to determine the monthly payment amount to be used for qualifying purposes.
If the monthly payment is unknown, the loan may be pre-qualified using 3% of the balance of the student loan. Documentation must be provided to confirm the payment amount. If documentation cannot be provided, final loan qualification must be based on 3% of the balance of the student loan. |
| SunTrust | Credit | Student Loans | • If there is no payment reported on the credit report or the payment is currently deferred, a payment can be determined by using either 1% of the outstanding balance or a complete copy of the note from the loan
origination that identifies the exact payment. Student loans are counted in the debt ratio, even if deferred. |
| US Bank | Credit | Student Loans | If the borrower is presently delinquent on any Federal or State debt (ex. Student loan), the borrower is not eligible until the delinquent account is brought current, paid or a satisfactory repayment plan has been made between the borrower and the agency and is verified in writing. All Federal and State Tax Liens must be paid in full for the mortgage to be acceptable to USBHM. |
| GMAC | Credit | Student Loans | ? Installment debts or student Loans (including deferred Loans) are treated as follows: * With more than 10 monthly payments remaining, the debt is counted in the DTI calculation * With 10 or less monthly payments remaining, the debt is counted in the DTI calculation unless documentation reflects that the debt does not increase the DTI by more than 5% and incremental reserves (sufficient to payoff the balance of the debt and any required program reserves) are documented * For Loans underwritten to DU, DU determines whether to include installment debts with less than 10 monthly payments remaining * Deferred loans are always included |