Must I include student loans in debt-to-income ratio if my parents pay my student loans?
I am going to apply for mortgage pre-approval. My student loans are in my name, but my parents pay the monthly bill. Do I have to include the loans in my debt-to-income ratio if my parents pay the monthly bill? Will the lender accept canceled checks to prove my parents pay the student loan?
Tags: debttoincome, Loans, mortgage pre approval, parents, ratio, Student, Student Loan
Yes you do. Your parents are not under any legal obligation to pay the loans and could stop at any time. You can explain the situation to the lender and they may might make an accommodation, but its unlikely.
They will be on your DTI. You can qualify for more house though if your parents will sign on with you, using a “kiddie condo” loan. Ask your loan officer about it.
You don’t have to buy a condominium…..
You can remove them from your income to debt ration by placing them in forbearance for 1 year. Once your mortgage is approved, cancel the forbearance and allow parents to continue making ayments
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