For college grads who borrowed money for schooling, it’s tough to save for a downpayment or pay for a mortgage when hundreds of dollars in student loan payments are due each month.
NerdWallet reports that Fannie Mae enacted new guidelines about how lenders should evaluate mortgage applicants with student loans.
One solution is an income-driven repayment plan that factors in a borrower’s debt-to-income ratio using the monthly student loan payment. Second, Fannie Mae is more accepting of borrowers who had a co-signer on their student loans. Also, late last year, Fannie Mae partnered with the student loan refinance company SoFi to pilot a student loan cash-out refinance program.