Any luck securing financing with high student loan debt to income ratio?

[Nathan Duncan]

Seeing that most college graduates leave school with a mountain of debt versus their income from their employment I was wondering if anybody has had any luck securing traditional financing with a high student debt to income ratio? I have this situation and fortunately have creative financing options for my properties but wanted to know if anybody been able to purchase going to the bank

[Jim Keller]

Originally posted by @Nathan Duncan:

Seeing that most college graduates leave school with a mountain of debt versus their income from their employment I was wondering if anybody has had any luck securing traditional financing with a high student debt to income ratio? I have this situation and fortunately have creative financing options for my properties but wanted to know if anybody been able to purchase going to the bank

When I was an real estate agent "2 yrs ago" I sold many homes to clients with student loans. You can defer the loans for 12 months, this will remove them from your DTI calculation. This is on FHA loans, you would have to get your own lender to answer about any conventional approval.

I don't know if this deferral will work but make sure you arrange it through your loan officer if it can be. The deferral is typically for 12 months and I believe this 12 month payment relief loop hole allows you not count the payment on your DTI. I had anxious clients that on there own got the deferral and then by the time we were ready to get the loan the deferral was only for the remaining 10 months so the debt had to be counted on there DTI.

Remember he who has the gold makes the rules, so consult them and close on your deal.