Fannie Mae Comes to the Rescue
When you can’t get more debt, Fannie Mae comes to the rescue and makes it possible not to count the debt you owe so you can pile on more debt.
Fannie Mae announced new policies that will help more borrowers with student debt qualify for a home loan. These innovations address challenges and obstacles to homeownership due to a significant increase in student loan debt over the past decade and provide access to credit for qualified borrowers.
Americans owe over $1.4 trillion in student loan debt, spread out among about 44 million borrowers. That’s about $620 billion more than the total U.S. credit card debt. In 2014 there were over 7 million debtors in default.
Fannie Mae Comes to the Rescue
The new solutions from Fannie Mae give homeowners the opportunity to pay down student debt with a mortgage refinance, allow borrowers to exclude non-mortgage debt paid by others as part of the loan application process, and make it more likely for borrowers with student debt to qualify for a mortgage loan by allowing lenders to accept student debt payments included on credit reports.
- Student Loan Cash-Out Refinance: Offers homeowners the flexibility to pay off high-interest rate student debt while potentially refinancing to a lower mortgage interest rate.
- Debt Paid by Others: Widens borrower eligibility to qualify for a home loan by excluding from the borrower’s debt-to-income ratio non-mortgage debt, such as credit cards, auto loans, and student loans, paid by someone else. I like this feature. Just declare these debts are paid by others, like your parents, and it isn’t counted.
- Student Debt Payment Calculation: Makes it more likely for borrowers with student debt to qualify for a loan by allowing lenders to accept student loan payment information on credit reports.
“We understand the significant role that a monthly student loan payment plays in a potential home buyer’s consideration to take on a mortgage. We want to be a part of the solution,” said Jonathan Lawless, Vice President of Customer Solutions, Fannie Mae. “These new policies provide three flexible payment solutions to future and current homeowners. In turn, it will allow lenders to serve more borrowers.”
Fannie Mae Comes to the Rescue
Thanks to the Clintons, borrowers cannot discharge student loan debt through bankruptcy. With this new rule from Fannie Mae, Fannie Mae comes to the rescue. By refinancing to pay off student loans, if you get in trouble and can’t make your mortgage payments, you can file for bankruptcy. Essentially there go the student loans. Then you wait five years and boomerang, you are back in business.
You know, because more debt is exactly the cure for millennials suffering the financial consequences of too much debt. But, at least this should help with inflating Housing Bubble 2.0. We ought to get upset about this move by Fannie Mae. When the debt bubble explodes, we the taxpayers will be the ones to pay.
JT Integrity Properties is here to help homeowners out of any kind of distressed situation.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple, honest truth about your home. And how we can help you sell it fast to resolve any situation.
Give us a call today at 260-202-2222 to let us know how we can help YOU!