FHA Changes rule for Student Loans effective April 15, 2016.

FHA and HUD just came out with an updated Mortgagee Letter 16-08 in regards to Deferred Student Loans for FHA Loans for a Kentucky FHA Mortgage loan approval.

Previously had to count 2% of balance against DTI,  it is changed to 1% of balance against DTI.  See below from the Letter.  

Student Loans
(4) Calculation of Monthly Obligation
Regardless of the payment status, the Mortgagee must use either:
 the greater of:
- 1 percent of the outstanding balance on the loan; or
- the monthly payment reported on the Borrower's credit report;   or
the actual documented payment, provided the payment will fully amortize the loan over its term.

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