Video Transcript:
Your real student loan payment might be very low. But home loan lenders can ignore that number. They will use their own, often much bigger, calculation. I'm David Ghazaryan, and my work is solving this exact problem. Lenders use two different sets of rules for your student loan, causing confusion. With a conventional loan, your zero-dollar payment counts as zero. But with an FHA loan, lenders must instead use 0.5% of your total balance. (Data may vary over time) This one difference means your loan choice is a huge decision. If you have a low payment, a conventional loan is almost always your better option. Choosing the wrong loan path can create a huge fake monthly debt. This new debt inflates your numbers, which can easily lead to a quick denial. This underlying structure directly impacts your home buying power. For more analysis, see my full article and social media. The links are in the description.
Read Blog Here: https://www.iqratemortgages.com/blog/how-student-loans-impact-your-texas-mortgage-approval
