Posted on: 22nd Jun, 2009 07:52 am
I am looking to buy my first home and have just started the pre-qualification process. I had a question about my student loans, and was hoping someone would be able to help. I have $60K in student loans, which are in my name with my parents as my cosigner. My parents and I have worked it out so that I pay for half, and they pay for half. This weekend however, when discussing with the mortgage broker, he said that the full amount would be considered in my debt to income ratio. I am wondering if there are any ways that I can prove that I am only paying half, or if not, if I am then able to take what my parents are paying for the loan as additional income. (or any legal document I can show proving this is our agreement) I just started repayment in December 08 and my loans are still through the original lenders. Please let me know if you have any questions for addtional clarification.
Hi Jaclyn,
Would your parents be willing to give you a cash gift equal to the value of their "half" of your student loan of $60K? If so, applying their gift might reduce the loan to a level at which you would qualify.
Would your parents be willing to give you a cash gift equal to the value of their "half" of your student loan of $60K? If so, applying their gift might reduce the loan to a level at which you would qualify.
that's one thought, eva. unfortunately, jaclyn, you've been in repayment for only 7 or 8 months; that is insufficiently long enough for your parents' payments to be documentable in attempting to eliminate those debts from your obligations. (sorry - runon sentence, but i got on a roll...).
one thing that might help: you can apply for and likely receive a deferment on these loans. if you do so, and receive a deferment for at least 12 months, those loans (all of them) need not be considered as debt payments. now mind you that doesn't mean you are prevented from making payments - it just means that the student loan lender wouldn't require payments. if you did that, you could simply the end the deferment(s) once you close and go back to what you were doing.
i'm not sure that translated all that well, but i hope so. as things stand now, that lender is correct and you'll run into this with anyone else, also.
one thing that might help: you can apply for and likely receive a deferment on these loans. if you do so, and receive a deferment for at least 12 months, those loans (all of them) need not be considered as debt payments. now mind you that doesn't mean you are prevented from making payments - it just means that the student loan lender wouldn't require payments. if you did that, you could simply the end the deferment(s) once you close and go back to what you were doing.
i'm not sure that translated all that well, but i hope so. as things stand now, that lender is correct and you'll run into this with anyone else, also.
