Equal Housing Lender
Student Debt Solutions (SDS) is Now Connected to HomePrep!
Pam Marron • Jan 09, 2024
Student Debt Solutions for Home Borrowers
Existing student loan repayment plans have re-started in October 2023 after the COVID-19 payment deferral pause. For prospective homebuyers, this means that student loan payments need to be disclosed and documented to qualify for a mortgage.
HomePrep, an IT platform that connects MLO’s with challenged clients to HUD counselors that can help those clients get “mortgage ready” recently added Student Debt Solutions (SDS) Repayment Plan services. Covid-19 deferred student loan payments are now due again and an income-driven repayment (IDR) plan based on your client’s income and family size may provide a lower payment, making purchasing a home possible. For some, IDR payment plans can be as low as $0 per month. And with some plans, forgiveness or cancellation may still be available.
SDS can also help clients who are already in a home and want to find the best student loan repayment plan for their needs.
Being prepared to use SDS
1) Set aside 15-20 uninterrupted minutes
2) Have your Login information ready for Studentaid.gov
3) Be aware of your household income, family size and tax filing status
In additional to providing this information, a few customized questions will be asked leading to a section called “Decide your Plan” where the user can select a specific plan that meets their goals – either the lowest monthly payment or the lowest total repayment.
How to make your plan a reality
Once the plan has been selected there are tools to help the user to act on their plan:
1) Action Plan – this is a complete set of instructions on the required forms and the steps required to make your selected plan become the new payment plan that reduces your student loan debt.
2) Document Preparation – this process uses questions to gather the needed information to complete all forms required to complete your plan application.
3) Expert Assistance – if needed, expert assistance can be scheduled for an additional fee. This would include a live 30-minute session with a student loan expert to review the user’s plan and provide answers to questions or guidance on difficult situations.
Click here to watch the Student Debt Solutions demo that gives a thorough description of the entire process!
SDS is an online application that helps student loan borrowers identify default resolution, cancellation, and forgiveness that they are eligible to receive for their Federal Student Loans - additionally, SDS identifies the best repayment program eligible for the borrower based on their financial goals as well as their current circumstances (income, family, occupation, federal student loan file and a brief questionnaire).
A few of my clients allowed me to watch on a Zoom call as they navigated through the Student Debt Solutions website. The system asks questions while guiding you through and is very easy to navigate! Clients see what their payment could be upfront, but only pay the $99 cost after deciding to proceed with a plan.
Clients who are preparing for a mortgage can include the SDS Student Loan Repayment Plan* with five other HomePrep services** to prepare for a mortgage. HomePrep also offers a single use service to SDS for clients that don’t need a mortgage but are looking for a student loan repayment plan to reduce or escalate payments.
**Cost is $99 for 5 HomePrep services. *SDS Student Loan Repayment Plan is an additional cost of $99.
As a special for Jan. 17th Brokers & Bagels webinar attendees, take 50% off your 1st client that goes through HomePrep to use this SDS product by entering code HomePrep on the paywall through the month of January! – REGISTER FOR BROKERS & BAGELS HERE
Don’t forget to
register here to join us on Jan. 17th from 11am to 12 noon at the next Brokers and Bagels webinar that shows exactly how Student Debt Solutions SDS works!
Writer Pamela Marron is a licensed Loan Originator NMLS #246438 in Florida who works for Innovative Mortgage Services, NMLS #250769 in Lutz, Fl. Articles written are strictly her opinion and are published to help loan originators, real estate professionals and mortgage clients. This is not used to solicit for business.
Pam Marron | NMLS# 246438
Tara Jerse | NMLS# 2105127
Innovative Mortgage Services, Inc. | NMLS# 250769
Equal Housing Lender
Down Payment Connect is already being used by MLOs and Realtors. Now it's available to HUD Counselors through HomePrep! Down payment assistance is quickly rising to the top need for clients wishing to purchase a home. Down Payment Connect , the back-end data provider for the parent Downpaymentresource.com , houses every down payment assistance program in the US and provides extremely detailed information laid out in a consistent format for each DPA program in their system. Throughout the last two years, Downpaymentresource.com administrators have worked with MLO’s and the HomePrep developers to add nearly all wholesale down payment assistance programs to their platform and they didn't stop there! Extensive filters that allow for selection of specific client needs such as type (ie. SFR, manufactured homes, condos, multi-family, ADU’s), uses like renovation, above AMI income levels, non-1st time homebuyers are just a few of the filters you will find along with stand alone 2nd mortgages, combined 1st and 2nd mortgages and grants. DownpaymentResource.com is also in many MLS systems across the US and provides limited directory information and a free landing page for realtors to promote that they use DPA. Both MLO’s and realtors can subscribe to Down Payment Connect to get more of the extensive directory and back-end tools. Now, through HomePrep, HUD counselors can also use the Down Payment Connect system to filter trhough DPA programs that clients are qualified for, and can even provide wholesale programs when working with an independent loan originator (often called a mortgage broker)! Through HomePrep, HUD counselors are now able to provide MLO’s and clients with the DPA programs that they have found the client is eligible for.
If you have FFEL Student Loans, Take Action Before April 30th!
Three great tools that mortgage loan originators (MLO) can use to assist clients who need help with credit, down payment assistance and student loan repayment services have been used, fine-tuned and are already in use with individual MLO’s. These tools combined with the Freddie Mac HomeCoach automated system along with budgeting help and Homebuyer Education are all integrated in the HomePrep online platform that connects MLO’s with clients who have challenges to HUD counselors that get them mortgage ready.
Pam Marron, NMLS# 246438
Innovative Mortgage Services, Inc. NMLS# 250769
