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Real Estate Home Mortgages/strudent loan forbearance v. deferment


We are buying a home in GA. Underwriting is requesting that we place our student loans in deferment.  We are not eligible for deferment(not in school, no financial hardship, etc.) We are eligible for forbearance(we have a certain amount of months to use as we choose).  Will the forbearance be sufficient? What about with a letter of explanation to show that we are not actually in default and have made timely payments and that forbearance is available to us for our use as requested?

Thanks for your question - Underwriting requirements vary from lender to lender - If you can demonstrate a forbearance for at least 36 months, then the underwriter might not calculate it into your debt ratio.  You may also want to investigate the consolidation of your student loans - by consolidating them it may lower your monthly payment (I'm making an assumption that your debt to income ratio is too high.)

I hope this information is helpful, I apologize for the delay in answering.  Best of luck with your home purchase, feel free to post any follow up questions.

Thanks for using!
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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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Brian Beardsley


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