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Real Estate Home Mortgages/Student loan forbearance and home loan approval



I have been preapproved for a home loan and have been looking for a property to purchase.

Due to recent changes in FHA guidelines, the lender said I should see if I could lower my SL payments to lower my income to debt ratio (otherwise I may not be eligible for FHA.)  My credit is good.  

My student loan payments were more than $400 a month (I had been paying at the highest tier to get it paid off earlier).  My SL balance is about $29,000. I applied with the Department of Ed. and was approved for a lower payment.  Two months after I began making the lower payment, my SL was transferred to a loan servicer (as part of the SAFRA bill - - recent legislation - - the DOE has transferred or will be transferring about a million loans to services for no rhyme or reason because of this legislation).  

Anyway, between the DOE and the servicer, they messed up my loan payment reduction.  Turned out my income was too high to make a difference in my monthly payment in the ICR plan (income contingent repayment).  The new loan servicer told me if he deactivated the ICR plan that DOE had opened for me and re-worked my loan - - he could get it down to the lower payment I wanted, which was just $200. per month.  During the process, because of the transfer and the mix up in my records between the the servicer and the DOE, I ended up getting a one-month general forbearance to get the one payment off the record that was doubled and to start fresh with the reworked loan.  

I know this was a long explanation, but I wanted to make my situation clear.  My question is, will the mortgage lender even know about the one-month forbearance?  And if so, will it negatively affect my loan approval? (I imagine, once I do find a place and put in an offer, the lender will need to re-work my financials.)

On the face of it..... I don't have a problem with the forbearance.
Even if someone questioned it.... A letter of explanation would suffice.

Now... If the rest of your file is a mess.... Maybe it is scrutinized. Bet if everything else is pretty straight forward.... No worries!!!  
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

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Tom Burris


I can answer any question regarding Mortgage loans for Purchase or Refinance. I currently work as a Mortgage Banker in Dallas, TX and have experience as a Mortgage Broker. The favorite part of my job is helping First Time Home Buyers. I also consider myself an expert of Credit and Credit Qualifying for a home loan. Many of my loans are the result of showing clients how to credit qualify for a loan after they were denied in the past. We do FHA, VA & Conventional Financing. I have extensive experience in Investor Loans as well. I will NOT answer questions about 'getting around guidelines', ect. Or if I sense that you are trying to call your 'investment' property a primary residence, I will reject the question. I will ALWAYS err on the side of caution if I sense that the question is fraudulent in nature.


7 years experience as a Mortgage Broker and as a Mortgage Banker

NMLS# 335055


Mortgage Professionals in Texas are required to take many ethics courses and other industry training to satisfy State mandated continuing education requirements.
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