On Friday, the Federal Housing Administration (FHA) announced updates to its student loan monthly payment calculations to take steps to remove barriers and provide more access to affordable single-family FHA-insured mortgage financing for creditworthy individuals with student loan debt.
The updated policy more closely aligns FHA student loan debt calculation policies with other housing agencies, helping to streamline and simplify originations for borrowers with student loan debt obligations.
This announcement enhances FHA’s ability to serve one of its core demographics—first-time homebuyers.
For all outstanding student loans, regardless of payment status, the payment must be calculated as follows:
Lenders may implement the changes immediately but must implement the changes for FHA Case Numbers assigned on or after August 16, 2021.