Can I get an FHA loan if I have student loans?
If you’re considering doing the Nomad model and you already have student loan debt you can still get an FHA loan.
It used to be the if you did not have repayment information for a student loan then lenders would need to estimate your payment on student loans for FHA financing to be 2% of the loan balance per month. Ouch! In mid 2016, FHA changed their policy to be the same as what Fannie/Freddie use which is 1% of the loan balance.
So, if you had $50,000 in student loan debt, it used to be that with FHA you’d have to budget $1,000 per month for payments on that student loan (that’s 2%). With the new guidelines, that is reduced to $500 per month.
This helps improve your debt to income ratio making it easier to qualify for FHA loans.