If it's a problem, debt-to-income ratios for FHA loans are more forgiving.

Haven't read the rule, but agree the terminology being used in the media is confusing. I think they are probably talking about monthly or annualized debt payments, not the full amount of the debt. It doesn't make sense to me that they would be comparing the total amount owed against income (when I think they would have to be looking at income on a monthly or annualized basis). As I understand it, PP is right, banks have always counted student loan debt in the debt/income ratios (just weren't bound by a federal rule re: what the actual debt to income ratio had to be).

student debt has always counted toward the debt to income rules.

I believe the new rule you are talking about is that mortgage cannot be more than 43% of income.

Disclaimer: I only heard one news story on this...

This forum appears to be replent with very educated folks with very expensive student loan debt. The new mortgage rules will not back a bank loan to borrowers whose total burden would be 43% of debt (in relation to income?) . Shall I assume the student loans count toward this debt? Is it monthly payment or the whole burden?

Anybody concerned?