Sterling Heights, MI – The Federal Housing Administration has announced new qualification changes in its debt calculator for mortgages. The new calculations focus on potential mortgage applicants that have student loans.
“I have been serving my clients for 23 years in the mortgage industry,” says Greg Kitchen, Sales Manager of Mortgage One Suburban. This a very welcome change that needed to be made. We knew change was coming, it was only a matter of time for FHA to wake up and see that the current guidelines were not fair to applicants with student loan debt. “I take great pride in helping my clients obtain mortgage financing for either a home purchase or refinancing. Here at Mortgage One, we feel that communication, with both the customers and realtors, is of the utmost importance. Without communication, the entire process can quickly become stressful for all parties involved. We understand that the new requirements may make qualifying for an FHA loan much easier and as a result we wanted to get the word out. We are as committed as ever to helping applicants get the loans they need.”
Previously, Federal Housing Administration applicants who had been granted a temporary deferment on student loan payments for twelve months or more, were allowed to have that debt ignored in calculations for debt-to-income ratios. Under the new rules, the FHA requires that applicants must include all student loans in the borrower’s liabilities, regardless of the payment type or status of the payments. When calculating an applicant’s debt-to-income ratio, the FHA now requires that 1% of the applicant’s outstanding student loan debt be included as a monthly repayment obligation.This change in the FHA guidelines will open up mortgage financing to potentially millions of college students and graduates who have outstanding student loans.
There are still a few ways an applicant can make qualifying for an FHA loan easier. One such way is to make extra payments on their student loans to pay them off quicker, which would lower the outstanding balance used in the FHA’s debt calculations.
One company trying to help applicants secure mortgage loans is Mortgage One. Mortgage One is one of the top Federal Housing Administration Lenders in the state of Michigan. Their expertise in FHA 203k loans, also known as a fixer upper loan, provides yet another avenue for Mortgage One to help assist home buyers and homeowners. The FHA’s 203k loans are broken down into two different programs; the standard 203k loan and the streamlined 203k loan. While the standard 203k loan is used for major house repairs, the streamlined 203k loan is utilized for more minor house repairs such as a bathroom or kitchen remodel, new roof, siding, carpeting and even appliances.
We have found that after the recession many homeowners are staying in their current homes and remodeling and the FHA 203k loan is a fantastic option for them.
Greg Kitchen continually strives to provide his clients with excellent service, and uses the knowledge gained from over 20 years in the industry to do so.
Mortgage One continues to lead the state of Michigan in providing quality service to its clients, and continues to be the top Federal Housing Administration lender. They have excellent knowledge of FHA and FHA 203k loans, and they make it easy to see if you can find out if you qualify.
For more information on this subject, you can visit Mortgage One’s website at www.fhaloanmichigan.org
Mortgage One is an Equal opportunity Lender.
Company Name: Mortgage One Suburban
Contact Person: Greg Kitchen, NMLS# 166067
Address:13486 Canal Rd
City: Sterling Heights
Country: United States