Guideline answers · FHA
FHA · Debts
How does FHA calculate a student loan payment for DTI?
Every student loan counts, whatever its status. If the credit report or the servicer's documentation shows a payment above $0, use it; if the credit report shows $0, including deferment and forbearance, use 0.5% of the outstanding balance.
Checked against the sources below on October 29, 2026. Reviewed by Chris Black, NMLS 275073, on November 2, 2026.
The rules
- All student loans go in the borrower's liabilities, regardless of payment type or status.
- Payment above zero: use the payment on the credit report or the actual documented payment.
- Payment of zero on the credit report: use 0.5% of the outstanding balance. A $40,000 balance counts as $200 a month.
- Using a payment lower than the credit report shows needs written documentation from the creditor or servicer of the actual payment, the payment status, the balance and the terms.
- A loan can be left out when written documentation shows it was forgiven, canceled, discharged or paid in full.
- The manually underwritten section uses the same calculation.
Watch for
- This is FHA only. Fannie Mae, for example, allows a documented $0 income-driven payment and uses 1% for deferred loans.
- Lenders often overlay student loans. Confirm your lender follows the handbook as written.
Sources
HUD Single Family Housing Policy Handbook 4000.1, II.A.4.b.iv(H) Student Loans (TOTAL)
0.5 percent of the outstanding loan balance, when the monthly payment reported on the Borrower's credit report is zero.
HUD Single Family Housing Policy Handbook 4000.1, II.A.4.b.iv(H) Student Loans (TOTAL)
The Mortgagee must include all Student Loans in the Borrower's liabilities, regardless of the payment type or status of payments.
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