New Updates for FHA Homebuyers

Friday, June 25, 2021   /   by Randy Durham

New Updates for FHA Homebuyers

     The Federal Housing Administration announced updates last week on modifications to its student loan monthly payment calculations to provide more access to single-family loans. Previously, FHA used 1% of your loan balance to calculate your monthly student loan obligation, without factoring in that many borrowers are on income-based repayment plans. The new FHA policy bases the monthly payment calculated into your debt to income ratio based on your actual payment. For example, if are on an income-based repayment plan and you owe $30,000 total but only pay $175 a month, FHA will use that number for your monthly payment, instead of 1% of $30,000 (or $300 a month). 

     This is great news for creditworthy individuals who don’t qualify for a conventional mortgage. This new adjustment also helps many more first-time homebuyers achieve homeownership. You can read more about the new policy on the Department of Housing & Urban Development here.

Keller Williams Realty
Randy Durham
1830 Washington Street
Chattanooga, TN 37408

Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS.
Last updated October 17, 2021 Copyright © 2021

Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS. Last updated October 17, 2021 Copyright © 2021
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