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What payment amount should be used for student loans?
-What payment amount should be used for student loans?
If a payment amount is shown on the credit report, it may be used for qualifying purposes. However, if the required payment is listed as $0, documentation must be obtained to verify that a zero payment is due to the borrower being approved for an income based repayment (IBR) plan. If the required monthly payment is not listed on the credit report, the monthly payment may be determined by obtaining copies of the loan documentation or using 1% of the outstanding balance. Under the EZ DecisioningSM program, payments may be calculated based on the Agency guidelines pertaining to this topic which apply to the findings used (refer to Freddie Mac guidelines when valid Loan Product Advisor® (LPASM) findings are used; refer to Fannie Mae when valid Desktop Underwriter® (DU®) findings are used).
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Does Arch MI have expanded guidelines for loans with borrowers who are medical or dental professionals, allowing exclusion of student loans from ratios and/or employment which starts after the loan closing date?
-Does Arch MI have expanded guidelines for loans with borrowers who are medical or dental professionals, allowing exclusion of student loans from ratios and/or employment which starts after the loan closing date?
Yes! Arch MI is pleased to offer expanded underwriting guidelines to support programs for medical and dental professionals (e.g., Medical Resident; Medical Doctor (MD); Doctor of Dental Science (DDS); Doctor of Dental Medicine (DMD); Doctor of Optometry (OD); etc. – see guideline for complete list). For manually underwritten primary residence, one unit, purchase or rate/term refinance transactions, these expanded guidelines allow the exclusion of certain deferred student loan payments from the DTI ratio calculation and/or employment beginning post-closing. Additional guidelines apply; please refer to our medical/dental professionals program flyer at https://mi.archcapgroup.com/Portals/1/Documents/Guidelines/010418/Medical-Dental_Guidelines_010418_NR.pdf .
