Mortgage Coach has partnered with LoanSense, an online student loan advisor. The partnership equips mortgage lenders to help homebuyers with high monthly federal student loan payments achieve better home financing outcomes by enrolling in federal student loan Income Driven Repayment (IDR) plans and Public Service Loan Forgiveness (PSLF).
“Addressing the barrier student loans present to homeownership is part of Mortgage Coach’s ongoing and relentless effort to equip lenders with data and technology benefits to better serve their communities with more home financing options,” said Joe Puthur, Mortgage Coach’s president. “The impact of reducing a borrower’s student loan payment by a few hundred dollars a month can be life-altering. It could mean $50,000 more for a better school district, an extra bedroom or closer proximity to employment.”
Despite strong incomes and credit scores, many of the 42.9 million Americans with federal student loan debt are either denied home financing or have reduced home purchasing power because they have higher debt-to-income ratios (DTIs) due to student loans. Mortgage Coach’s partnership with LoanSense gives lenders access to a purchasing power calculator that determines how much borrowers’ monthly student loan payments can be reduced – and how much their home purchasing power can be increased – through enrollment in an IDR plan.
Alongside each LoanSense purchasing power calculation, Mortgage Coach generates a Rent vs. Own Total Cost Analysis (TCA), which compares the costs and equity gains of renting, owning and owning a more valuable home with increased purchase power over time.
“A home is 80% of the average American’s wealth at retirement and delaying access to student-debt burdened borrowers will have major socio-economic impacts,” said LoanSense Founder and CEO Catalina Kaiyoorawongs. “We are pleased to integrate and partner with Mortgage Coach, who is equally committed to improving financial and homeownership outcomes for all prospective borrowers.”