Student loans - Mortgage lending

[Jose Luis G.]

Hi,

I am considering applying for a mortgage loan but have a high outstanding balance in private student loans that have been in default since 2015. The loans currently only report to one of the three credit bureau's so I have a 590, 720 and 750 credit score for all 3. 

I am currently negotiating a settlement with the creditor but I'm curious to know how the mortgage lender will account for these defaulted loans and whether they would approve me for a first home financing. More specifically, whether the fact that they are defaulted is going to prevent me from getting a mortgage given that from a DTI assuming a 1-2% payment of outstanding balance periodically still leaves me well placed from a DTI perspective. The interest rate on the loans are about 6% so I wouldn't want to rehabilitate the loan if the oustanding balance is going to be counted at its full nominal as opposed to the 1-2% assumption which is more favorable given my good income and credit.

Thank you