How VA counts student-loan payments in DTI, including income-driven plans. The 2 Mortgage Guys at Luminate Bank in Kokomo, nationwide.
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Student loans are one of the biggest variables on VA files. Documented payments are preferred; when no payment is shown, lenders commonly use 5% of the balance divided by 12 — which hits both DTI and residual income.
The payment used in underwriting — not just the balance — drives approval.
A $40,000 deferred balance at 5% ÷ 12 is about $167/month — enough to change residual income on a tight file.
Accurate student-loan docs make the residual worksheet reliable.
Calculation methods differ — do not assume FHA or conventional rules apply.
Related guides to help you compare options and move toward pre-approval.
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Ryan & Steve will apply the correct VA student-loan payment to your DTI and residual income — then get you pre-approved with numbers you can trust.