Mortgage Navigator • Conventional • Debts & DTI

Student loan payments

Fannie and Freddie can produce very different DTI results when a student loan shows a $0 payment.

Build My Mortgage Game PlanConventional Navigator

Fannie — documented $0 IDR can be $0

If the borrower is on an income-driven repayment plan and current student-loan documentation verifies the actual required monthly payment is $0, Fannie permits the lender to qualify using $0.

Fannie — deferment or forbearance

If no monthly payment is reported or the credit report shows $0 because the loan is deferred or in forbearance, Fannie requires either 1% of the outstanding balance or a documented fully amortizing payment.

Freddie

Freddie's student-loan rule differs. Current Guide treatment requires an amount greater than zero for student loans in repayment, deferment or forbearance; when the reported payment is zero, Freddie's Guide uses its prescribed percentage of the outstanding balance unless another permitted documented payment applies.

Agency Difference — potentially major: a borrower with a legitimate $0 IDR payment can have a materially lower DTI under Fannie than under Freddie. This is exactly why Mortgage Navigator does not publish one generic “conventional student loan rule.”
Could the other agency solve this? Fannie Mae and Freddie Mac are not identical. If this scenario fails under one agency, compare the other agency's current rule and AUS result before assuming conventional financing is unavailable. A lender overlay is also different from an agency prohibition.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Debt treatment can change with documentation, remaining term and AUS feedback. Current agency guide controls.