Originally Posted by
WaterRooster
I was wondering how student loans play into the mortgage process. As pilots the majority of us have substantial student loans. Being a regional FO, with no debt other then that loan, how does that affect my purchasing power? I'm in the Chicago area which doesn't help anything!
They just get factored into your debt to income ratio like any other debt. All your current monthly debt payments (minimum credit card payment, student loan payment amount, car payment, etc) are totaled up plus your proposed mortgage payment and divided by your monthly income. Bonuses you receive also get added in to increase your monthly income and lower your debt to income ratio. You'll want your debt to income to be under 50%
If you make 60k a year with bonuses you wouldn't want your monthly debt payments to include the mortgage to exceed $2500.
60000/12 months = 5k monthly income
5000 x .5 = 2500 max debt obligations to include the new mortgage
Plan your income off your min guarantee and bonuses, but know that usually a lender can use your actual hours versus the min guarantee if needed. Hope that gives you a basic starting point. Let me know if you need anything else.
Fly safe!
Marty
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