What we verified in “Student loans and getting a mortgage”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to the CFPB, your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income; it is one way lenders measure your ability to pay, and different products and lenders have different limits.

   Sources 1 · What is a debt-to-income ratio? (last reviewed Aug. 28, 2023): 'all your monthly debt payments divided by your gross monthly income'; 'one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow'; 'Different loan products and lenders will have different DTI limits.' · Checked October 31, 2026

2. According to Fannie Mae's Selling Guide (B3-6-05, August 5, 2026), the lender may use the student loan payment on your credit report; if the report does not show the correct payment, it may use the one on your most recent statement; and if the report shows no payment or $0, it must determine one: if you are on an income-driven plan, it may verify with documents that your actual payment is $0 and qualify you with $0; and if your loan is deferred or in forbearance, it may use 1% of the balance, even if that is less than the fully amortizing payment, or a fully amortizing payment based on the documented terms.

   Sources 2 · Selling Guide B3-6-05, Monthly Debt Obligations (08/05/2026), 'Student Loans': 'If a monthly student loan payment is provided on the credit report, the lender may use that amount'; 'the lender may use the monthly payment that is on the student loan documentation (the most recent student loan statement)'; 'If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment'; 'For deferred loans or loans in forbearance, the lender may calculate a payment equal to 1% of the outstanding student loan balance ... or a fully amortizing payment using the documented loan repayment terms' · Checked October 31, 2026

3. According to Fannie Mae's Selling Guide (B3-6-05), if you owe a non-mortgage debt such as a student loan but someone else is actually repaying it, the lender may leave that payment out of your debts, whether or not that person is also obligated on the debt, unless that person is an interested party to the purchase (such as the seller or agent); to do so it must get that person's canceled checks or bank statements for the last 12 months, with no late payments.

   Sources 2 · Selling Guide B3-6-05, 'Debts Paid by Others': 'When a borrower is obligated on a non-mortgage debt - but is not the party who is actually repaying the debt - the lender may exclude the monthly payment'; 'This policy applies whether or not the other party is obligated on the debt'; 'not applicable if the other party is an interested party to the subject transaction (such as the seller or real estate agent)'; 'Non-mortgage debts include installment loans, student loans'; 'the lender must obtain the most recent 12 months' canceled checks (or bank statements) from the other party ... with no delinquent payments' · Checked October 31, 2026

4. According to HUD Handbook 4000.1, on an FHA loan the lender must include all your student loans in your debts, regardless of the payment type or whether you are paying; it must use the payment on the credit report or the actual documented payment when it is above zero, or 0.5% of the balance when the report shows a payment of zero; if it uses a payment lower than the one on the report, it needs written documentation from the creditor or servicer of the actual payment, the account status, the balance and the terms; and it may leave the payment out if written documentation shows the balance was forgiven, canceled, discharged or paid in full.

   Sources 3 · Handbook 4000.1 (last revised August 12, 2026), II.A.4, '(H) Student Loans (TOTAL)', p. 217: 'must include all Student Loans in the Borrower’s liabilities, regardless of the payment type or status of payments'; 'written documentation of the actual monthly payment, the payment status, and evidence of the outstanding balance and terms from the creditor or student loan servicer'; 'may exclude the payment ... where written documentation ... indicates that the loan balance has been forgiven, canceled, discharged, or otherwise paid in full'; 'the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or 0.5 percent of the outstanding loan balance, when the monthly payment reported on the Borrower’s credit report is zero' · Checked October 31, 2026

5. According to HUD Handbook 4000.1, the lender cannot process an FHA loan if you have delinquent federal non-tax debt; it must check every borrower in the CAIVRS system; if it finds a debt, it must confirm it with the agency that is owed; if the agency confirms the debt is valid and delinquent, you are not eligible until you resolve it with that agency; and you cannot be denied solely because of CAIVRS information that has not been verified.

   Sources 3 · Handbook 4000.1, II.A.1, '(10) Borrower Ineligibility Due to Delinquent Federal Non-Tax Debt', p. 153–154: 'Mortgagees are prohibited from processing an application for an FHA-insured Mortgage for Borrowers with delinquent federal non-tax debt'; 'must check all Borrowers against the Credit Alert Verification Reporting System (CAIVRS)'; 'verify the validity and delinquency status of the debt by contacting the creditor agency'; 'ineligible for an FHA-insured Mortgage until the Borrower resolves the debt with the creditor agency'; 'may not deny a Mortgage solely on the basis of CAIVRS information that has not been verified' · Checked October 31, 2026

6. Under federal law (20 U.S.C. §1087e(q)), since July 1, 2026 the Department of Education offers an income-based repayment plan called the Repayment Assistance Plan; in that plan, if the calculated payment is less than $10, the monthly payment is $10; and each year it is determined whether you still qualify, with verification of your annual income.

   Sources 4 · 20 U.S.C. §1087e(q)(1): 'beginning on July 1, 2026, the Secretary shall carry out an income-based repayment plan (to be known as the “Repayment Assistance Plan”)'; (q)(4)(B)(ii): 'less than $10, the applicable monthly payment of the borrower shall be $10'; (q)(1)(G): procedures 'shall apply for annually determining the borrower’s eligibility for the Repayment Assistance Plan, including verification of a borrower’s annual income' · Checked October 31, 2026

7. According to the CFPB, the counseling agencies in its search tool are approved by HUD and offer independent advice, often at little or no cost, on buying a home, renting, defaults, forbearances, foreclosures and credit; you search by ZIP code; and not every agency offers every service.

   Sources 5 · Find a Housing Counselor: 'approved by the U.S. Department of Housing and Urban Development (HUD)'; 'offer independent advice, often at little or no cost to you'; 'buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'Search by ZIP code'; 'Not every housing counselor offers all services' · Checked October 31, 2026