That’s wild, I had the opposite happen. My credit union bent over backwards to help me, but the big-name banks acted like my IDR plan didn’t even exist. Guess it really depends who’s behind the desk that day… Mortgage roulette, anyone?
Credit unions really are a mixed bag, huh? I had a similar run-around, but in reverse. For me, the local bank was the one that actually took my IDR plan into account when calculating my DTI, but my credit union just used the standard 1% of the loan balance—didn’t matter how low my monthly payment actually was. That bumped my “debt” way higher on paper than it really is.
If anyone’s stuck in this limbo, here’s what worked for me:
1. Gather every shred of documentation on your student loan payments—monthly statements, payment history, the IDR approval letter.
2. Be ready to explain your repayment plan in plain English. Some folks at the desk don’t see these cases every day and might not get it.
3. Ask directly how they calculate student loan payments for mortgages. If they don’t use your actual amount, push back (politely). Sometimes you’ll get a different answer from a different person.
It’s wild how much depends on who you talk to or which branch you walk into. Mortgage roulette is right...
It’s wild how much depends on who you talk to or which branch you walk into. Mortgage roulette is right...
That’s the truth. I’ve seen situations where two underwriters at the same institution handled IDR plans totally differently—one used the documented payment, the other defaulted to 1%. My tip: if you get a “no,” don’t be shy about asking for clarification or escalation. Sometimes it’s just a matter of finding someone who understands the guidelines. It can feel like jumping through hoops, but persistence really does make a difference.
“if you get a ‘no,’ don’t be shy about asking for clarification or escalation.”
Couldn’t agree more with this. Here’s how I usually tackle it: 1) Get everything in writing—screen grabs, emails, whatever. 2) Ask the lender to show you where in their guidelines it says they have to use 1% instead of your actual IDR payment. 3) If they still push back, request a supervisor or underwriter review. It’s a hassle, but sometimes just showing you know the rules gets things moving. Had to do this myself last year and it actually worked.
Interesting approach—documentation really is your best friend when things get tricky with lenders. I’ve seen some banks stick to their own interpretations of Fannie/Freddie guidelines, which can be maddening. Has anyone actually seen a lender change their tune after you pointed out the specific guideline? I’m curious if it’s more effective with smaller credit unions versus bigger national banks... sometimes it feels like the bigger guys just dig in their heels no matter what.