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Indianapolis Neighborhood Housing Partnership

Are you paying off student loans and looking to buy a home?

Here are the two ways mortgage lenders view student loan debt repayment and how each impact how much you can afford:

  1. Income based repayment: Income based repayment (IBR) is calculated based on your income and family size. It could be calculated to as little as $0 per month to as much as 15 percent of your income. If a mortgage lender uses your IBR when calculating your monthly debt, you may appear to have less monthly debt than you actually have, qualifying you for more of a home loan amount than you can comfortably afford.
  2. The “1%” rule: This method is often used when you receive a deferment or forbearance allowing you to temporarily stop making student loan payments. The 1% rule, projects your monthly student loan payment to be equal to 1%of the total balance for all your student loans. If a mortgage lender uses the “1%” rule, you may appear to have more monthly debt than you actually have, so a lender may qualify you for less of a home loan amount than you can comfortably afford.

Want to see these concepts as an infographic or need more information? Check out this downloadable resource or talk with the unbiased, trusted experts at INHP about your situation.

INHP office holiday hours

Starting Dec. 25, 2019, through Jan. 1, 2020, all INHP office locations will be closed for the holidays. We will resume normal hours of operation at 8:30 a.m., Jan. 2, 2020.

 

INHP will respond to any inquiries or form submissions made via our website or email system in the order they were received after we reopen. If you do not hear from an INHP representative by Jan. 9, 2020, please call 317-610-4663.

 

We wish you a warm and happy holiday season!

INHP offices are closed

Due to inclement weather, all INHP office locations are closed until 10 a.m., Dec. 17. At this time, staff are not able to answer phone calls; however, you may still use our online services, including:

  • Completing an online form for our home purchase or home repair programs
  • Registering for an INHP education course
  • Taking an online education course

We look forward to continuing operations and serving you once weather permits. If your request is urgent, please leave a voicemail at 317-610-4663. We will return your call in the order it was received as soon as we return to normal business hours.


We apologize for any inconvenience.

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