FHA TAKES STEPS TO REMOVE BARRIERS TO HOMEOWNERSHIP FOR THOSE WITH STUDENT LOAN DEBT

摘要

The Federal Housing Administration (FHA) has updated its student loan monthly payment calculations in order to remove barriers and provide more access to affordable single family FHA-insured mortgage financing for creditworthy individuals with student loan debt, which has a disproportionate impact on people of color. The updated policy more closely aligns FHA student loan debt calculation policies with other housing agencies, helping to streamline and simplify originations for borrowers with student loan debt obligations. The policy updates for FHA Single Family Title Ⅱ forward mortgages remove the current requirement that lenders calculate a borrower's student loan monthly payment of 1% of the outstanding student loan balance for student loans that are not fully amortizing or are not in repayment The new policy bases the monthly payment on the actual student loan payment, which is often lower, and helps home buyers who, with student debt, meet minimum eligibility requirements for an FHA-insured mortgage. This announcement enhances FHA's ability to serve one of its core demographics-first-time homebuyers. Over 80% of FHA-insured mortgages are for first-time homebuyers on average each year. FHA estimates that over 45% of these borrowers also have student loan debt, with much of this debt impacting people of color.