A straight answer
My student loan payment is zero. Why is the lender counting a payment?
The direct answer
The rulebook decides. A zero can be an income-driven payment or a pause, and each program differs: Fannie Mae can use a documented zero, FHA counts a share of the balance when the report shows zero, and VA runs its own formula. I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente.
I arrange loans with lenders and put the financing together. The same student loan can produce three different qualifying payments depending on which rulebook the loan follows and what your servicer statement says, so I run all three on your statement before you choose a program. Text or call me with the plan you are on, what the statement shows, what the lender counted and which loan type you were quoted, and I will tell you which obligation belongs in your file. I work with buyers in California, Utah, Oregon and Arizona.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-18
A student loan payment counted higher than what you pay? Text me the plan you are on, what your statement shows, what the lender counted, and which loan type you were quoted.
No credit pull happens from a text or a call. Texts and calls go to Zach's cell.
What happens after you text me?
Texts go straight to my cell, and I answer them myself when I'm free. I'll ask for the few details that actually matter, tell you whether the structure looks worth pursuing, and explain the next step. If I don't think the loan fits, I'll tell you that too.
A text or phone conversation does not pull your credit.
What does Fannie Mae count?
The payment on your credit report, when there is one: "If a monthly student loan payment is provided on the credit report, the lender may use that amount for qualifying purposes," and if the report is wrong, the lender may use the payment on your most recent student loan statement. When the report shows no payment or a zero, the lender must determine a qualifying payment. For deferred loans or loans in forbearance it may use either a payment equal to a stated share of the outstanding balance or "a fully amortizing payment using the documented loan repayment terms." The rule that answers this page's question: "If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is" zero, and "The lender may then qualify the borrower with a" zero payment (Fannie Mae Selling Guide B3-6-05).
So on a loan sold to Fannie Mae, a documented income-driven zero can count as zero, while a deferment or forbearance cannot: the guide says deferred installment debts must be included in your recurring monthly obligations, and the lender picks a payment for them. The difference is the paperwork, and a servicer letter stating the plan type and the actual payment is what turns a zero on your account into a zero in the file.
What does FHA count?
All of it, regardless of status. HUD's handbook says "The Mortgagee must include all Student Loans in the Borrower's liabilities, regardless of the payment type or status of payments." For the amount, "regardless of the payment status, the Mortgagee must use:" "the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or" a stated share of the outstanding loan balance "when the monthly payment reported on the Borrower's credit report is zero." If the payment used is less than the one on the credit report, the lender needs written documentation of the actual payment, status, balance and terms from the servicer (HUD Handbook 4000.1).
Two things follow. A full-text search of the handbook found no provision on income-driven plans, and no sentence lets a documented zero be used as zero; when the credit report shows zero, FHA's share-of-balance rule applies, which is why an FHA quote can carry a payment you have never made. And the handbook does let a lender exclude a loan when written documentation from the program, creditor or servicer shows the balance "has been forgiven, canceled, discharged, or otherwise paid in full."
What does VA count?
VA's handbook has its own formula. "If the borrower(s) provides written evidence that the student loan debt will be deferred at least 12 months beyond the date of closing, a monthly payment does not need to be considered." If the loan is in repayment, or payments begin within twelve months of closing, the lender calculates a threshold payment from a stated annual share of the balance divided by twelve. A higher payment on the credit report is used as reported; a lower one counts only when "the loan file must contain a statement from the student loan servicer that reflects the actual loan terms and payment information for each student loan(s)," dated within sixty days of closing (VA Lenders Handbook, Chapter 4). The chapter has no income-driven provision either, so a documented plan payment is read against the threshold rather than taken as zero.
What if someone else pays my student loans, or I co-signed one?
Fannie Mae lets a lender exclude a non-mortgage debt, student loans included, "When a borrower is obligated on a non-mortgage debt - but is not the party who is actually repaying the debt," provided the lender obtains "the most recent 12 months' canceled checks (or bank statements) from the other party making the payments that document a 12-month payment history with no delinquent payments," and the other party is not an interested party to the sale (B3-6-05). FHA handles the same situation under contingent liabilities: a co-signed obligation is counted unless the lender documents that "the other legally obligated party has made 12 months of timely payments" (HUD Handbook 4000.1).
Excluding a payment from the calculation does not remove your legal responsibility for the loan. It changes the mortgage math, not the promissory note, and a parent who has been paying for eleven months is one month short of the record both rulebooks ask for.
What can change the number before I apply?
The document, first. A servicer statement or letter that names the plan and the actual payment is the difference between a documented income-driven zero and an unexplained zero on a credit report, and it has to be recent. The program, second: the same statement produces different qualifying payments under the three rulebooks above, and I show you all three before you pick a loan type. The report, third: if the credit report carries a payment that is not your real one, Fannie Mae lets the lender use the statement instead, and the fix is a document rather than an argument.
What the rules do not do is reward a pause. A deferment or forbearance is counted under every rulebook here, so the plan that shows a real, documented payment usually reads better than one that shows nothing. Whether to change your repayment plan is a decision for you and your servicer, with the timing of a mortgage application in mind; I will tell you what each choice does to the file. If a co-borrower's income or a different loan size is the simpler lever, the hard-to-qualify hub covers those routes.
What should I have ready?
- A current servicer statement for each loan, showing the plan type, the balance and the actual monthly payment.
- If a loan is deferred or in forbearance, the letter that says so and the date payments resume.
- If someone else pays a loan you are obligated on, twelve months of their canceled checks or bank statements.
- Your credit report, so we can see what each loan shows there.
- Which loan type you were quoted, the state, and your other monthly debts.
Send documents through the secure process I give you when we talk, not by ordinary text. A conversation does not pull your credit. Buying a home? Get pre-approved, and text me which plan your student loans are on. The online letter uses a soft credit check, and the student loan payment it counts follows the rules above once the servicer statement is in hand.
Questions people ask next
Does deferment mean the lender ignores my student loans?
No. Fannie Mae includes deferred installment debt and assigns a payment to it, FHA includes every student loan regardless of status, and VA disregards a payment only with written evidence that the loan is deferred at least twelve months beyond closing. A pause is counted; a documented plan payment is what changes the number.
My income-driven payment is zero. Which loan type can use that?
Under Fannie Mae's rule, a lender may verify the actual payment is zero with student loan documentation and qualify you with a zero payment. FHA's handbook and VA's chapter have no income-driven provision: FHA applies a share of the balance when the credit report shows zero, and VA reads a documented payment against its own threshold.
Will student loan forgiveness help my application?
Once it is in writing. FHA lets a lender exclude a loan when documentation from the program, creditor or servicer shows the balance has been forgiven, canceled, discharged or paid in full. A forgiveness that has been applied for but not granted is still a balance with a payment attached under each rulebook.
My parents pay my student loans. Does that help?
It can, with a twelve-month record. Fannie Mae lets the lender exclude a non-mortgage debt that someone else is actually repaying when it obtains twelve months of that person's canceled checks or bank statements with no late payments, and FHA's contingent-liability rule asks for twelve months of timely payments by the other party. Your legal obligation on the loan does not change.
What if my credit report shows the wrong payment?
Fannie Mae lets the lender use the payment on your most recent student loan statement when the report does not reflect the correct one, and FHA and VA both accept a servicer statement for a lower documented payment under their conditions. The statement has to be current, and I ask for it before anything is submitted.
Will asking about this affect my credit score?
No. A text or a call does not pull your credit. An application is a separate step, and I tell you before it happens.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
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Sources and checked dates
Sources: Fannie Mae Selling Guide, B3-6-05, Monthly Debt Obligations (checked 2026-10-17) · HUD Handbook 4000.1, Update 18 (last revised August 12, 2026), II.A.4.b.iv(H) Student Loans (checked 2026-10-17) · HUD Handbook 4000.1, Update 18 (last revised August 12, 2026), II.A.4.b.iv(L) Contingent Liabilities (checked 2026-10-17) · VA Lenders Handbook, VA Pamphlet 26-7, Chapter 4, Topic 5, Debts and Obligations (checked 2026-10-17).
Show each claim on this page, what it depends on, and the date it was checked (5)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Fannie Mae Selling Guide B3-6-05, Monthly Debt Obligations (08/05/2026), Student Loans: "If a monthly student loan payment is provided on the credit report, the lender may use that amount for qualifying purposes. If the credit report does not reflect the correct monthly payment, the lender may use the monthly payment that is on the student loan documentation (the most recent student loan statement) to qualify the borrower." "If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the lender must determine the qualifying monthly payment using one of the options below." For deferred loans or loans in forbearance, the lender may calculate a payment equal to a stated percentage of the outstanding balance, even if that is lower than the actual fully amortizing payment, or "a fully amortizing payment using the documented loan repayment terms." "If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment." Under Deferred Installment Debt: "Deferred installment debts must be included as part of the borrower's recurring monthly debt obligations." | Fannie Mae Selling Guide, B3-6-05, Monthly Debt Obligations | 2026-10-17 |
| Fannie Mae Selling Guide B3-6-05, Monthly Debt Obligations (08/05/2026), Debts Paid by Others: "When a borrower is obligated on a non-mortgage debt - but is not the party who is actually repaying the debt - the lender may exclude the monthly payment from the borrower's recurring monthly obligations." "Non-mortgage debts include installment loans, student loans, revolving accounts, lease payments, alimony, child support, and separate maintenance." "This policy applies whether or not the other party is obligated on the debt, but is not applicable if the other party is an interested party to the subject transaction (such as the seller or real estate agent)." "In order to exclude non-mortgage or mortgage debts from the borrower's DTI ratio, the lender must obtain the most recent 12 months' canceled checks (or bank statements) from the other party making the payments that document a 12-month payment history with no delinquent payments." | Fannie Mae Selling Guide, B3-6-05, Monthly Debt Obligations | 2026-10-17 |
| HUD Handbook 4000.1 (Update 18, last revised 8/12/2026), II.A.4.b.iv(H) Student Loans (TOTAL), with identical text at II.A.5.a.iv(G) (Manual): "Student Loan refers to liabilities incurred for educational purposes." "The Mortgagee must include all Student Loans in the Borrower's liabilities, regardless of the payment type or status of payments." "If the payment used for the monthly obligation is less than the monthly payment reported on the Borrower's credit report, the Mortgagee must obtain written documentation of the actual monthly payment, the payment status, and evidence of the outstanding balance and terms from the creditor or student loan servicer." "The Mortgagee may exclude the payment from the Borrower's monthly debt calculation where written documentation from the student loan program, creditor, or student loan servicer indicates that the loan balance has been forgiven, canceled, discharged, or otherwise paid in full." Calculation: "For outstanding Student Loans, regardless of the payment status, the Mortgagee must use:" "the payment amount reported on the credit report or the actual documented payment, when the payment amount is above zero; or" a stated fraction of the outstanding loan balance "when the monthly payment reported on the Borrower's credit report is zero." | HUD Handbook 4000.1, Update 18 (last revised August 12, 2026), II.A.4.b.iv(H) Student Loans | 2026-10-17 |
| HUD Handbook 4000.1 (Update 18, last revised 8/12/2026), II.A.4.b.iv(L) Contingent Liabilities (TOTAL): "A Contingent Liability refers to a liability that may result in the obligation to repay only when a specific event occurs." "Contingent liabilities may include Co-signer liabilities and liabilities resulting from a mortgage assumption without release of liability." "The Mortgagee must include monthly payments on contingent liabilities in the calculation of the Borrower's monthly obligations unless the Mortgagee verifies and documents that there is no possibility that the debt holder will pursue debt collection against the Borrower should the other party default or the other legally obligated party has made 12 months of timely payments." For cosigned liabilities: "If the cosigned liability is not included in the monthly obligation, the Mortgagee must obtain documentation to evidence that the other party to the debt has been making regular on-time payments during the previous 12 months." | HUD Handbook 4000.1, Update 18 (last revised August 12, 2026), II.A.4.b.iv(L) Contingent Liabilities | 2026-10-17 |
| VA Lenders Handbook (VA Pamphlet 26-7), Chapter 4, Topic 5, Debts and Obligations (change date February 22, 2019), the student loan paragraphs following subsection f: "If the borrower(s) provides written evidence that the student loan debt will be deferred at least 12 months beyond the date of closing, a monthly payment does not need to be considered." "If a student loan is in repayment, or scheduled to begin within 12 months from the date of VA loan closing, the lender must consider the anticipated monthly obligation in the loan analysis and utilize the payment established by calculating each loan at" a stated annual share of the outstanding balance divided by twelve. "If the payment(s) reported on the credit report for each student loan(s) is greater than the threshold payment calculation above in a above, the lender must use the payment recorded on the credit report." "If the payment(s) reported on the credit report is less than the threshold payment calculation above, in order to count the lower payment, the loan file must contain a statement from the student loan servicer that reflects the actual loan terms and payment information for each student loan(s)." "The statement(s) must be dated within 60 days of VA loan closing, and may be an electronic copy from the student loan servicer's website or a printed statement provided by the student loan servicer." | VA Lenders Handbook, VA Pamphlet 26-7, Chapter 4, Topic 5, Debts and Obligations | 2026-10-17 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-18.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.