Fannie Mae has announced several new policies and a program that could help borrowers who have student loan debt.
First, they'll be offering a student loan cash-out refinance which will give homeowners the option to pay off high-interest-rate student lows as part of a re-finance.
They will also be implementing policies to widen borrower eligibility by excluding debts paid by others from debt-to-income ratios and to accept student loan information from credit reports rather than including them in underwriting.
“We understand the significant role that a monthly student loan payment plays in a potential homebuyer’s consideration to take on a mortgage, and we want to be a part of the solution,” Jonathan Lawless, vice president of customer solutions at Fannie Mae told Chicago Agent Magazine. “These new policies provide three flexible payment solutions to future and current homeowners and, in turn, allow lenders to serve more borrowers.”
Read more at Chicago Agent Magazine here.