How Student Loans Affect DTI
- Income-Driven Repayment (IDR): Fannie Mae now uses the actual payment on your credit report, even if $0–$50/month — much better than the old 1% rule
- Deferred loans: Updated guidelines are more favorable than previous requirements
- FHA: Still uses 1% of balance if payment is $0 — conventional and VA are better for IDR borrowers
If student loans are holding back your DTI qualification, book a call — there are often program choices that significantly improve your picture. Contact Trevor
