If you're working with a borrower who is repaying their student loan debts, I've found this cheat sheet to be extremely helpful and hope you will to:

FHA will use 0.50% of the balance when the credit report shows $0 due or an Income-Driven Payment Plan, whichever is lower.

    Example: $55,000 x .50% = $275

USDA will use 0.50% of the balance when the credit report shows $0 due or an Income-Driven Payment Plan, whichever is lower.

    Example: $55,000 x .50% = $275

VA will use 5% of the balance divided by 12 as a monthly qualifying debt. However, if the loan repayment begins more than 12 months past the loan note date, then no payment will be required to be used for qualifying.

    Example: $55,000 x 5% = $2,750/12 = $229.16

FHLMC will use 0.50% of the balance when the credit report shows $0 due or an Income-Driven Payment Plan, whichever is lower.

    Example: $55,000 x .50% = $275

FNMA will use one of the below options when credit reports show $0 due:

   ✓ If the borrower is on an Income-Driven Payment Plan and documentation can verify the actual monthly payment is $0, they may qualify with a $0 payment.

   ✓ Will use 1% of the balance if the loans are in deferment or forbearance.   Example: $55,000 x 1% = $550

Special Note: When there is a payment showing on the credit report, the lender will apply that amount for debt-to-income ratios unless an approved income driven repayment plan is provided that changes the amount.