The Federal Housing Administration (FHA) recently updated its student loan monthly payment options to relieve pressure on those seeking homeownership.
The details:
The updated options remove barriers and provide more access to affordable single-family FHA-insured mortgage financing for creditworthy individuals with student loan debt. According to the FHA, the updated policy more closely aligns with debt calculation policies that other housing agencies currently observe, which will help streamline and simplify originations for borrowers with student loan debt.
What it means:
“As our country comes together to remember Juneteenth and acknowledge National Homeownership Month, we are reminded of a basic truth: that, too often in our history, the march toward freedom has been a long, halting, and uneven journey,” said Housing and Urban Development Secretary Marcia L. Fudge.
“Homeownership is the cornerstone of the American Dream and the best way to build generational wealth. I am proud that FHA is taking action to make it easier for borrowers with student loan debt to qualify for a federally insured mortgage,” added Fudge. “This new policy will make a big difference for individuals throughout our nation and is another step in our mandate to promote equity and opportunity for homeownership.”
Source: FHA
FHA – Better late than never in some sort of reparation for the injustices of the 1900’s.
Am I understanding correctly that many loans have been forgiven or paid in full but not updated in the credit report? And more importantly, are new student loan forgiveness programs on the way?