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Deferred student loans mortgage underwriting, depending on the lender will often not include the loan payment if proof can be provided that the payments are deferred for greater than 12 months. This can be beneficial as will not be counted against your monthly liabilities when a mortgage broker is calculating your Debt to Income ratio. Most conforming lenders will include student loan payments into account if they are in a temporary forbearance period. If you are no longer in school but you are simply stopping your student loan payments with a temporary forbearance period then you will most likely have to have the student loan payments taken into consideration when qualifying for a home mortgage loan. Keep this in mind if you have a lot of student loans or if you are not considering your student loans a debt because they are in a forbearance period. Interest on student loans is only deductible up to a maximum of $2500 until your income exceeds a certain amount. You lose the student loan interest deduction when your income exceeds $65,000 filing single and $135,000 filing jointly. If your student loan interest is not deductible you may want to consider rolling your loan into a home mortgage to be able to deduct the interest. In most cases the underwriter will allow larger amount student loans in deferment if the overall credit profile is good and the borrower has timely consumer credit payments. You may run into problems if your credit profile is full of late payments and maxed out credit cards as this shows financial irresponsibility and is a red flag for underwriters Another general rule of thumb is that if the payments are deferred for a period of greater than a year, lenders will most likely not count them against a borrowers DTI, unless the student loan is a large amount, or the borrower has a low FICO score. The final decision relies on the underwriter and usually considered on case by case basis.
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