Student loan debt can be a problem if you are trying to buy a home. We have come up with a few tips in helping you get on the path to owning your own home.

There are a few types of student loan repayment that could be listed on your credit report.

Deferment. This means your loan is not in the repayment period, however it still very well may be charging you interest adding to your balance. If your loan is in deferment and it shows no payment is due, then 1% of the outstanding balance is what the lender would use to calculate what your month liability would be. Being in deferment does not mean you can ignore the payment.

IBR (Income-Based Repayment). If you have entered a repayment plan that is lower than 1%, you have most likely agreed to this program. In the case of an FHA loan, 1% would still have to be used. However, for a conventional loan, whatever appears on the credit report is the number that would be utilized. If it is not reporting correctly, we can have the credit bureaus update them.

If you’ve struggled to get these questions answered, you have probably been speaking to the wrong lender. We can show you how to contact your student loan servicer and get a handle on what your payments are and if you have other options that fit your budget.

Every situation is different. Call or email Chris or Bob if you would like personalized tips and tricks to improve your score with little effort and keep those questions coming!

Chris Conlon cconlon@afncorp.com 704-609-5017

Bob Parm bparm@afncorp.com 704-778-2603