STUDENT LOANS are calculated into the DTI, even if they are in DEFERMENT.

If you have student loans in deferment, the new rule allows FHA lenders to assume that you’re paying .50% of the balance each month for the purposes of calculating DTI. So if you have $25,000 in deferred student loans, an FHA lender will add $125 to your assumed monthly debt obligations, instead of $500 under the old rule.

You will be asked to provide a copy of your deferment letter, Income-driven payment plan, or student loan statement.

 Applicants need to have passable credit with no outstanding judgements, tax liens or collections. Cannot currently be or have in the last two years Bankruptcy.

Credit & Background

 All collections need to be paid in full (this includes medical bills). (Tax time = good time to pay off debts!)

 Applicants must pass a Background and Sex Offender Registry check, as well as any household member 18 or older.

Note: See Memphis Habitat Homeownership Program flyer/Page Two of application.

1. Bring in your completed application with all applicable supporting documentation.