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. A payment on the most recent student loan statement may also be used. For income-based repayment (IBR) plans, documentation verifying the payment must be obtained (even when the IBR payment is $0). For deferred loans or loans in forbearance, a payment of 1% of the outstanding balance, or a fully amortizing payment using documented loan repayment terms should be used.
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 .