My wife and I are scheduled to close on a house on the 25th, but our FHA loan application is in serious doubt at this stage. The underwriter just contacted us yesterday to confirm my student loans, which showed as deferred previously, and we have hit a snafu. I just graduated with my MA in December, have substantial student loan debt, but am currently in my grace period. The underwriter needs to see that my student loans will be deferred until March of next year and while the student loan company would presumably have no problem with deferring my payments, they cannot do so while I am in my grace period. The underwriter understands that as soon as I get out of my grace period I will be be able to defer without any difficulty, but will not accept this. I have provided a letter stating that I am currently in my grace period and that I have 6 years of various deferment time available, but the mortgage company has still rejected this. I know what the FHA guideline is, but we are shopping around to other companies in the hope that they will read the letter in another way. My wife and I are very frustrated because we are able to pay the mortgage payment, and my student loans will not be a factor until such time that I get a job and unless I work for less than minimum wage at McDonald's I will easily be able to make this payment.
What are my chances of getting an underwriter to know the reality of the situation and sign off on this? Are there any options that I have?
What are my chances of getting an underwriter to know the reality of the situation and sign off on this?
- My opion is slim to none. A miracle may work.
Are there any options that I have?
- Pay off the debt entirely